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Natural Gas Prices Rise despite Oversupply Concerns (Continued from Prior Part) Trading channel
NYMEX-traded natural gas futures contracts for September expiry rose from the key support of $2.60 per MMBtu (British thermal units in millions) on August 25, 2015. Prices have been fluctuating between 2.60 per MMBtu and $2.90 per MMBtu for more than two months. Weather and oversupply concerns could be negative for natural gas prices in the short term.
Support and resistance
Warm weather and electric power plants’ demand could boost natural gas prices. Natural gas prices could see resistance at $3 per MMBtu. Prices tested this level in April 2015. In contrast, oversupply concerns could drag natural gas prices lower. The support for natural gas prices is seen at $2.60 per MMBtu. Prices hit this mark in June 2015.
Citigroup estimates that natural gas prices could average around $2.70 per MMBtu in 2015 and $3 per MMBtu in 2016. The natural gas price chart suggests that natural gas prices could fluctuate between $2.60 and $3 per MMBtu in the near term.
The recent surge in natural gas prices benefits upstream players like EOG Resource (EOG), Gulfport Energy (GPOR), and Chesapeake Energy (CHK). Together, these companies account for 3.23% of the SPDR Oil and Gas ETF (XOP). These stocks’ natural gas production mix is greater than 49% of their total production.
Rising natural gas prices benefit ETFs like the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG).
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EOG Resources
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CODE : EOG |
ISIN : US26875P1012 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
EOG Res. is a and oil producing company based in United states of america. EOG Res. is listed in United States of America. Its market capitalisation is US$ 78.5 billions as of today (€ 73.4 billions). Its stock quote reached its lowest recent point on July 11, 2003 at US$ 10.00, and its highest recent level on April 26, 2024 at US$ 135.70. EOG Res. has 578 636 343 shares outstanding. |