| Massive Supply: Will Natural Gas Break the $2.60 Level? | |
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Natural Gas Continues Its Downtrend – Exco Surges More than 5% (Part 2 of 3) (Continued from Part 1) Massive supply
The daily natural gas storage estimates increased to 7,278 million cubic feet per day on April 1, 2015—according to market estimates. However, it was at 798 million cubic feet per day on March 31. Apart from this, natural gas production in the US was at 79.76 Bcf (billion cubic feet) per day. This was an increase of 7.7% YoY (year-over-year).
The daily demand from residential and commercials declined by 29% on April 1, 2015. Demand declined by 46% for the week. Supply outweighed demand and put pressure on natural gas prices.
Warm weather forecasts have already been a key catalyst driving natural gas prices lower. As the heating season ends, natural gas demand drops. The important pivot for May natural gas futures is at $2.60 per MMBtu (British thermal units in millions). Prices settled multiple times at this level in 2015. The next support to watch for is $2.50 per MMBtu. Gas prices are below their 20, 50, and 100-day moving averages. There’s a possibility that prices might break $2.60 MMBtu levels—keeping in mind the massive supply consensus.
ETFs, like the Spider Oil and Gas (XOP), were also under pressure. XOP fell more than natural gas. Yesterday, it fell by 1.55%. However, stocks like Exco Resources (XCO) surged more than 5% for the second day. Other stocks topping the charts for XOP were Approach Resources (AREX), Halcon Resources (HK), and Energy XXI (EXXI). All of these stocks gained an average of 7% on yesterday’s trade. These companies account for 5.43% of XOP.
Continue to Part 3 Browse this series on Market Realist:
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Energy XXI
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EXPLORATEUR |
CODE : EXXI |
ISIN : BMG100821401 |
CUSIP : G10009101 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Energy X X I est une société d’exploration minière et de pétrole basée aux Etats-Unis D'Amerique. Son principal projet en exploration est VERDA RAGEN en USA. Energy X X I est cotée au Royaume-Uni et aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 370,4 millions US$ (302,0 millions €). La valeur de son action a atteint son plus haut niveau récent le 18 septembre 2009 à 9,63 US$, et son plus bas niveau récent le 15 avril 2016 à 0,12 US$. Energy X X I possède 95 459 002 actions en circulation. |