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May Natural Gas Futures Decline after 4-Day Rally (Part 1 of 2) Natural gas price action
Below is our natural gas price fundamental analysis. For an in-depth look at natural gas and related companies, sectors, and drivers, please refer to our Energy and Power page.
Natural gas futures for May delivery declined by 1.86%—led by warm weather estimates and rising inventory. Prices closed at $2.63 per MMBtu (British thermal units in millions) on Friday, April 17, 2015. The United States Natural Gas Fund LP ETF (UNG) tracks natural gas prices. UNG also declined by 1.63% and closed at $13.24 on Friday’s closing.
Last week, the EIA (U.S. Energy Information Administration) reported that weekly natural gas in storage rose by 63 Bcf (billion cubic feet) on April 16. This was the highest weekly inventory increase since November 6, 2014. It started putting pressure on gas prices. Prices increased unexpectedly on Thursday due to short covering. However, they started falling on Friday, April 17, 2015.
This is the fifth time that gas prices fell over the last ten days. Prices fell by 0.54% more on average down days than on average up days during the last ten trading sessions. Natural gas was the worst performer in yesterday’s trade. Gas prices followed their long-term downtrend—led by overproduction. Prices fell more than 10% YTD (year-to-date).
Energy ETFs like the Energy Select Sector SPDR ETF (XLE) and the Spider Oil and Gas ETF (XOP) fell in line with natural gas futures in yesterday’s trade. The S&P 500 also followed natural gas prices’ downtrend at the close of trade on Friday. Oil and gas exploration and production companies like WPX Energy (WPX), Chesapeake Energy (CHK), and Gulfport Energy (GPOR) also fell on Friday’s trade. These companies have a natural gas production mix greater than 68% of their total production. They account for 3.31% of XOP. These stocks are more sensitive to natural gas prices.
Continue to Part 2 Browse this series on Market Realist:
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Chesapeake Energy Corporation
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EN DÉVELOPPEMENT |
CODE : CHK |
ISIN : US1651671075 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Chesapeake Energy est une société de production minière basée aux Etats-Unis D'Amerique. Chesapeake Energy est en développement de projets de gaz et de pétrole en USA. Son principal projet en développement est DEEP BOSSIER en USA. Chesapeake Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 83,2 milliards US$ (77,7 milliards €). La valeur de son action a atteint son plus bas niveau récent le 13 mars 2020 à 0,12 US$, et son plus haut niveau récent le 18 novembre 2022 à 99,94 US$. Chesapeake Energy possède 909 242 558 actions en circulation. |