| Natural Gas Prices Recover Ahead of Inventory Report | |
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Impact of Excess Supply and Weather on the Natural Gas Market Natural gas price action
November natural gas futures contracts rose by 1.45% and closed at ~$2.1 per MMBtu (British thermal units in millions) on October 27, 2015. Prices rose for the first time in last five days due to bottom fishing. The US benchmark following ETFs, like the United States Natural Gas ETF (UNG), were almost flat in yesterday’s trade.
Weather
MDA Weather Services updated that warmer-than-normal winter weather could be experienced in the Rocky Mountains to the East Coast of the United States over the next week. The heating degree days will be 178 over the next two weeks, compared to 199 during the same period last year. The lower heating degree days signifies warmer weather in the lower 48 states of the United States. Mild winter will curb the heating demand. As a result, this could lead to a rise in the inventory in the oversupplied market. However, natural gas prices fell for the fourth consecutive days and hit a historic three-year low of $1.948 per MMBtu on October 27, 2015, their lowest since April 2012. The lower natural gas prices boosted demand, and prices recovered in yesterday’s trade.
Meanwhile, the EIA (U.S. Energy Information Administration) is scheduled to release its Natural Gas Storage Report on October 29, 2015. Last week, natural gas stocks rose by 81 Bcf (billion cubic feet) for the week ending October 16. The estimates of rising natural gas stocks could push natural gas prices lower. The record low natural gas prices have hit the performance of natural gas producers. The largest gas producers like Chesapeake (CHK), ExxonMobil (XOM), Devon Energy (DVN), and Anadarko Petroleum (APC) were also impacted by the lower natural gas prices.
Natural gas prices rose for the sixth time in the last ten days. Prices fell by 4.5% more on the average down days than on the average up days over the same period. Gas futures were among the top performer in Tuesday’s trade. Prices have fallen by 27.9% YTD (year-to-date) due to oversupply concerns. ETFs like the First Trust Energy AlphaDEX (FXN) and the Guggenheim S&P Equal Weight Energy ETF (RYE) are also impacted by the roller coaster ride of oil and gas prices.
In this series, we’ll look at natural gas prices and fundamentals. For an in-depth fundamental look at oil and gas as well as related companies, sectors, and drivers, please visit Market Realist’s Energy and Power page.
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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. |