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Natural Gas Market Is Volatile Due to Weak Indicators (Continued from Prior Part) Trading channel
Natural gas futures contracts for December slipped back after testing the resistance of $2.30 per MMBtu (British thermal units in millions) on November 2, 2015. Prices have been swinging within a downward trending price channel over the past month. The mild winter estimates have been driving natural gas prices.
Support and resistance
Weak demand cues and mild winter estimates could push natural gas prices lower. The next support for natural gas prices is seen at $2 per MMBtu. Prices tested this level in October 2015. On the other hand, a harsh winter could push natural gas prices higher. The nearest resistance for natural gas prices is seen at $3 per MMBtu. Prices tested this mark in April 2015.
Natural gas prices are trading below their 20-day and 50-day moving averages. This suggests that prices could fall more. Bank of America Merrill Lynch (BAML) estimates that natural gas prices could average around $2.85 per MMBtu in 2015. Capital Economics estimates that gas prices could hit $3.50 per MMBtu by the end of 2015 and $4 per MMBtu by the end of 2016. The downward trending channel suggests that natural gas prices could fluctuate between $2 and $2.60 per MMBtu in the short term.
Oil and gas producers like Devon Energy (DVN), Newfield Exploration (NFX), Cimarex Energy (XEC), Gulfport Energy (GPOR), and Comstock Resources (CRK) are impacted by falling natural gas prices. These companies’ gas production mixes account for more than 49% of their production portfolios. Combined, they account for 5.4% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
ETFs like the Velocity Shares 3x Inverse Natural Gas ETN (DGAZ) and the iShares US Oil Equipment & Services ETF (IEZ) are also impacted by the ups and downs in the energy market.
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Cimarex Energy Co.
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CODE : XEC |
ISIN : US1717981013 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Cimarex Energy est une société de production minière basée aux Etats-Unis D'Amerique. Cimarex Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 8,3 milliards US$ (7,2 milliards €). La valeur de son action a atteint son plus haut niveau récent le 23 mai 2018 à 99,89 US$, et son plus bas niveau récent le 30 septembre 2021 à 87,20 US$. Cimarex Energy possède 95 438 121 actions en circulation. |