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Natural Gas Prices Skyrocket to a 7% Weekly Gain (Part 1 of 2) Natural gas price rises for the fourth day in a row
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.
May natural gas futures rose by 2.84% and settled at $2.68 per MMBtu (British thermal units in millions) on April 16. Prices increased due to short covering and surging demand from electric power generators on Thursday. Natural gas ETFs like the United States Natural Gas Fund LP ETF (UNG) increased by 3.30% and settled at $13.46 at the close of trade.
On Thursday, April 16, 2015, the EIA (U.S. Energy Information Administration) released the weekly natural gas in storage report. The gas in storage increased by 63 Bcf (billion cubic feet) more than the market estimates of 53 Bcf. The weekly inventories’ increase is highest since November 6, 2014. As expected, natural gas prices tumbled almost 1.5% after the release of the report. However, the prices recovered in the later half of the day—driven by short covering.
Gas prices were up for the sixth time in the last ten trading sessions. Prices increased by 0.11% more on average up days compared to average down days over the same period. Brent crude oil and natural gas were the leading performers across all of the commodities in yesterday’s trade. Natural gas prices are still in a deep downtrend—driven by massive production. As a result, prices fell 7% YTD (year-to-date).
The Spider Oil and Gas ETF (XOP) and the Energy Select Sector SPDR ETF (XLE) diverged from the price movement of natural gas. They fell marginally by 0.68% and 0.23% at the close of trade. Even the S&P 500 fell marginally by 0.08% yesterday.
Oil and gas producers like Energy XXI (EXXI), EP Energy (EPE), and Exco Resources (XCO) gained marginally in yesterday’s trade. These stocks had stellar performance over the last month. On average, these companies have a natural gas production mix greater than 50% of their production portfolio. They account for 4.23% of XOP.
Continue to Part 2 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. |