| Natural Gas Prices Test the Key Support of $2.80 per MMBtu | |
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Natural Gas: Why did the Physical and Futures Market Diverge? (Continued from Prior Part) Uptrend channel
Natural gas futures for June delivery have been trading in an uptrend channel. Prices have been oscillating between this channel for the past seven trading sessions. Warmer weather and mild weather forecasts are the key catalysts for natural gas volatility. The EIA (U.S. Energy Information Administration) gas storage report is due on Thursday, May 14. It will be the key driver for gas prices this week.
The current volatility suggests that natural gas prices could swing in either direction. Bullish traders could see resistance at $2.90 per MMBtu (British thermal units in millions). Gas prices hit this mark multiple times in March 2015. In contrast, bearish traders could see the nearest support at $2.50 per MMBtu. Increasing inventory and massive production will continue to put pressure on gas prices.
Prices settled below their 100-day moving average of $2.84 per MMBtu on May 11. The downtrend channel breakout suggests that prices could hit $3 per MMBtu in the near term. In contrast, the RSI (relative strength index) suggests that prices could correct.
ETFs like the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG) are impacted by declining natural gas prices. They also impact energy stocks like Stone Energy (SGY), Bill Barrett (BBG), and Laredo Petroleum (LPI). They account for 4.13% of the Spider Oil and Gas ETF (XOP). These stocks have a natural gas production mix that’s greater than 40% of their total production.
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Bill Barrett Corporation
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CODE : BBG |
ISIN : US06846N1046 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Bill Barrett corp is a exploration company based in United states of america. Bill Barrett corp is listed in Germany and in United States of America. Its market capitalisation is US$ 534.1 millions as of today (€ 432.6 millions). Its stock quote reached its highest recent level on June 05, 2015 at US$ 9.67, and its lowest recent point on March 19, 2018 at US$ 4.84. Bill Barrett corp has 110 349 217 shares outstanding. |