| Natural Gas Prices Test the Key Support of $2.80 per MMBtu | |
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Natural Gas: Why did the Physical and Futures Market Diverge? (Continued from Prior Part) Uptrend channel
Natural gas futures for June delivery have been trading in an uptrend channel. Prices have been oscillating between this channel for the past seven trading sessions. Warmer weather and mild weather forecasts are the key catalysts for natural gas volatility. The EIA (U.S. Energy Information Administration) gas storage report is due on Thursday, May 14. It will be the key driver for gas prices this week.
The current volatility suggests that natural gas prices could swing in either direction. Bullish traders could see resistance at $2.90 per MMBtu (British thermal units in millions). Gas prices hit this mark multiple times in March 2015. In contrast, bearish traders could see the nearest support at $2.50 per MMBtu. Increasing inventory and massive production will continue to put pressure on gas prices.
Prices settled below their 100-day moving average of $2.84 per MMBtu on May 11. The downtrend channel breakout suggests that prices could hit $3 per MMBtu in the near term. In contrast, the RSI (relative strength index) suggests that prices could correct.
ETFs like the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the United States Natural Gas Fund LP (UNG) are impacted by declining natural gas prices. They also impact energy stocks like Stone Energy (SGY), Bill Barrett (BBG), and Laredo Petroleum (LPI). They account for 4.13% of the Spider Oil and Gas ETF (XOP). These stocks have a natural gas production mix that’s greater than 40% of their total production.
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Bill Barrett Corporation
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CODE : BBG |
ISIN : US06846N1046 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Bill Barrett corp est une société d’exploration minière basée aux Etats-Unis D'Amerique. Bill Barrett corp est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 534,1 millions US$ (432,6 millions €). La valeur de son action a atteint son plus haut niveau récent le 05 juin 2015 à 9,67 US$, et son plus bas niveau récent le 19 mars 2018 à 4,84 US$. Bill Barrett corp possède 110 349 217 actions en circulation. |