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Will Natural Gas Supplies Outpace Demand despite Falling Rigs? (Continued from Prior Part) Trading range
NYMEX-traded natural gas futures contracts for October delivery could rise. Natural gas prices are trading close to the key support level. The prices have been fluctuating between 2.50 and 2.80 per MMBtu (British thermal units in millions) since early September 2015. The larger-than-expected inventory rise is putting pressure on natural gas prices.
Key pivots
The pessimistic sentiments of oversupply and mild weather could push natural gas prices lower. Natural gas prices could see support at $2.50 per MMBtu. Prices hit this mark in April 2015. In contrast, warm weather could push natural gas prices higher. The resistance for natural gas prices could be seen at $3 per MMBtu. Prices hit this level in April 2015.
The EIA (U.S. Energy Information Administration) estimates that gas prices could average around $2.84 per MMBtu in 2015 and $3.11 per MMBtu in 2016. The downtrend channel suggests that gas prices could fluctuate between $2.50 and $3 per MMBtu in the near-term.
Falling natural gas prices impact oil and gas producers like Southwestern Energy (SWN), Cabot Oil & Gas (COG), and Range Resources (RRC). They account for 2.75% of the SPDR Oil and Gas ETF (XOP). These companies’ natural gas production mix is greater than 49% of their total production.
Energy ETFs like the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG) are impacted by falling natural gas prices.
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Cabot Oil & Gas Corporation
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CODE : COG |
ISIN : US1270971039 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cabot Oil & Gas is a oil exploration company based in United states of america. Cabot Oil & Gas is listed in Germany and in United States of America. Its market capitalisation is US$ 10.2 billions as of today (€ 9.0 billions). Its stock quote reached its lowest recent point on March 26, 2004 at US$ 10.00, and its highest recent level on January 14, 2022 at US$ 22.20. Cabot Oil & Gas has 460 786 236 shares outstanding. |