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Injection Season: Residential Demand Decreases for Natural Gas (Part 2 of 2) (Continued from Part 1) Short-term demand
The residential sector’s short-term demand for natural gas dropped 8% on March 31. However, demand from industrial facilities and power plants gained marginally. The demand from power plants saw a 20% increase YoY (year-over-year). With rising production and existing oversupply, natural gas prices will experience downward pressure. The demand will also drop due to the warm weather forecast. The heating season is nearly over.
Weather forecasts would play a pivotal role in driving the natural gas prices in the near term. For May, natural gas delivery settled below its 20, 30, and 50-day moving average. The nearest support for natural gas prices is seen at the $2.60 MMBtu (British thermal units in millions) level. Prices hit this mark multiple times in February and March 2015. Natural gas prices are weak. Considering the fundamental scenario, natural gas prices could fall more.
Interestingly, the Spider Oil and Gas ETF (XOP) gained yesterday. In contrast, natural gas dropped. Oil and gas producers like Exco Resources (XCO) rallied more than 5%. However, it’s still below its 20, 30, and 50-day moving averages. So, traders should be cautious trading XCO stock.
Oil and gas refining companies like Alon USA (ALJ), Green Plains (GPRE), and Clean Energy (CLNE) gained around 3%. They were trading above their 100-day moving average. The refineries were up on takeover chatter. These stocks account to 4.61% of XOP.
Browse this series on Market Realist:
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Clean Energy Fuels
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CODE : CLNE |
ISIN : US1844991018 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Clean Energy is based in United states of america. Clean Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 465.3 millions as of today (€ 418.3 millions). Its stock quote reached its highest recent level on September 05, 2014 at US$ 9.99, and its lowest recent point on March 13, 2020 at US$ 1.05. Clean Energy has 151 085 558 shares outstanding. |