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Weather and Inventory Are against Bullish Natural Gas Traders Natural gas price action
Natural gas futures contracts for December delivery fell slightly by 0.13% and settled at $2.253 per MMBtu (British thermal units in millions) on Tuesday, November 3, 2015. Prices fell for the second straight day due to sluggish demand estimates. Gas-tracking ETFs such as the United States Natural Gas ETF (UNG) diverged from the direction of natural gas prices in yesterday’s trade. UNG rose by 0.74% and closed at $9.56 on November 3, 2015.
The EIA (U.S. Energy Information Administration) will release the natural gas inventory report on November 5, 2015. In the report released last week, the natural gas inventory rose by 63 Bcf (billion cubic feet) for the week ending October 23, 2015. Market surveys project natural gas inventory could rise by 75 Bcf for the week ending October 30, 2015. The consensus of rising natural gas inventory should put downward pressure on natural gas prices. To learn more about natural gas inventory, visit the next part of this series.
Effect of weather on natural gas prices
The latest weather update suggests warmer weather across the lower 48 states for the upcoming weeks. A cold winter is the key catalyst for natural gas demand. A mild winter curbs heating needs and negatively influences natural gas prices in the short term.
Long-term lower natural gas prices would negatively influence large natural gas producers such as Chesapeake Energy Corporation (CHK), ExxonMobil (XOM), Devon Energy Corporation (DVN), and Anadarko Petroleum Corporation (APC). Natural gas futures were among the mediocre performers with respect to other commodities in Tuesday’s trade. Prices fell by 21.3% YTD (year-to-date) due to oversupply concerns. The uncertainty in the oil and gas market also impacts ETFs such as the First Trust Energy AlphaDEX ETF (FXN) and the Guggenheim S&P Equal Weight Energy ETF (RYE).
In this series, we’ll look at natural gas prices and fundamentals. For an in-depth look at oil and gas as well as related companies, sectors, and drivers, please visit Market Realist’s Energy and Power page.
Continue to Next Part 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 82,5 milliards US$ (77,0 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. |