| Natural Gas Prices Recover Ahead of Inventory Report | |
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Impact of Excess Supply and Weather on the Natural Gas Market Natural gas price action
November natural gas futures contracts rose by 1.45% and closed at ~$2.1 per MMBtu (British thermal units in millions) on October 27, 2015. Prices rose for the first time in last five days due to bottom fishing. The US benchmark following ETFs, like the United States Natural Gas ETF (UNG), were almost flat in yesterday’s trade.
Weather
MDA Weather Services updated that warmer-than-normal winter weather could be experienced in the Rocky Mountains to the East Coast of the United States over the next week. The heating degree days will be 178 over the next two weeks, compared to 199 during the same period last year. The lower heating degree days signifies warmer weather in the lower 48 states of the United States. Mild winter will curb the heating demand. As a result, this could lead to a rise in the inventory in the oversupplied market. However, natural gas prices fell for the fourth consecutive days and hit a historic three-year low of $1.948 per MMBtu on October 27, 2015, their lowest since April 2012. The lower natural gas prices boosted demand, and prices recovered in yesterday’s trade.
Meanwhile, the EIA (U.S. Energy Information Administration) is scheduled to release its Natural Gas Storage Report on October 29, 2015. Last week, natural gas stocks rose by 81 Bcf (billion cubic feet) for the week ending October 16. The estimates of rising natural gas stocks could push natural gas prices lower. The record low natural gas prices have hit the performance of natural gas producers. The largest gas producers like Chesapeake (CHK), ExxonMobil (XOM), Devon Energy (DVN), and Anadarko Petroleum (APC) were also impacted by the lower natural gas prices.
Natural gas prices rose for the sixth time in the last ten days. Prices fell by 4.5% more on the average down days than on the average up days over the same period. Gas futures were among the top performer in Tuesday’s trade. Prices have fallen by 27.9% YTD (year-to-date) due to oversupply concerns. ETFs like the First Trust Energy AlphaDEX (FXN) and the Guggenheim S&P Equal Weight Energy ETF (RYE) are also impacted by the roller coaster ride of oil and gas prices.
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Chesapeake Energy Corporation
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DEVELOPMENT STAGE |
CODE : CHK |
ISIN : US1651671075 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Chesapeake Energy is a producing company based in United states of america. Chesapeake Energy develops natural gas and oil in USA. Its main asset in development is DEEP BOSSIER in USA. Chesapeake Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 83.7 billions as of today (€ 78.2 billions). Its stock quote reached its lowest recent point on March 13, 2020 at US$ 0.12, and its highest recent level on November 18, 2022 at US$ 99.94. Chesapeake Energy has 909 242 558 shares outstanding. |