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Natural Gas Prices Rise Slightly on Cooler Weather Forecast Natural gas price action
US natural gas futures contracts for January 2016 trading in NYMEX rose marginally by 0.68% and settled at $1.76 per MMBtu (British thermal units in millions) on December 18, 2015.
Prices rose due to the cold winter weather forecast. The United States Natural Gas ETF (UNG) rose by 0.58% and closed at $6.92 on December 17, 2015.
Weather update
The Commodity Weather Group has reported that weather will be cooler in the midwestern parts of the United States. 50% of US households use natural gas for heating purposes. Cold weather boosts the demand for natural gas in the peak demand season between November and March. As a result, natural gas prices rallied for the first time in the last nine trading sessions.
Last week, the EIA (U.S. Energy Information Administration) reported that US natural gas in storage fell by 34 Bcf (billion cubic feet) for the week ending December 11, 2015. Market surveys estimated that natural gas in storage could fall by 43 Bcf for the same period.
Record US inventories continue to weigh on natural gas prices. The resulting historic low natural gas prices affect the margins of US gas producers such as Cimarex Energy (XEC), Cabot Oil & Gas (COG), Rice Energy (RICE), and Range Resources (RRC).
Volatility analysis
US natural gas prices have fallen 18% so far in December 2015 and 36% so far in 2015. Prices have fallen due to the long-term gap between supply and demand.
Meanwhile, the S&P 500 (SPY) fell by 2.6% in 2015. The roller coaster ride in the energy market also affects oil and gas ETFs such as the PowerShares DB Energy ETF (DBE) and the PowerShares DWA Energy Momentum ETF (PXI).
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Cimarex Energy Co.
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CODE : XEC |
ISIN : US1717981013 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cimarex Energy is a producing company based in United states of america. Cimarex Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 8.3 billions as of today (€ 7.2 billions). Its stock quote reached its highest recent level on May 23, 2018 at US$ 99.89, and its lowest recent point on September 30, 2021 at US$ 87.20. Cimarex Energy has 95 438 121 shares outstanding. |