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Injection Season: Residential Demand Decreases for Natural Gas (Part 2 of 2) (Continued from Part 1) Short-term demand
The residential sector’s short-term demand for natural gas dropped 8% on March 31. However, demand from industrial facilities and power plants gained marginally. The demand from power plants saw a 20% increase YoY (year-over-year). With rising production and existing oversupply, natural gas prices will experience downward pressure. The demand will also drop due to the warm weather forecast. The heating season is nearly over.
Weather forecasts would play a pivotal role in driving the natural gas prices in the near term. For May, natural gas delivery settled below its 20, 30, and 50-day moving average. The nearest support for natural gas prices is seen at the $2.60 MMBtu (British thermal units in millions) level. Prices hit this mark multiple times in February and March 2015. Natural gas prices are weak. Considering the fundamental scenario, natural gas prices could fall more.
Interestingly, the Spider Oil and Gas ETF (XOP) gained yesterday. In contrast, natural gas dropped. Oil and gas producers like Exco Resources (XCO) rallied more than 5%. However, it’s still below its 20, 30, and 50-day moving averages. So, traders should be cautious trading XCO stock.
Oil and gas refining companies like Alon USA (ALJ), Green Plains (GPRE), and Clean Energy (CLNE) gained around 3%. They were trading above their 100-day moving average. The refineries were up on takeover chatter. These stocks account to 4.61% of XOP.
Browse this series on Market Realist:
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Clean Energy Fuels
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CODE : CLNE |
ISIN : US1844991018 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Clean Energy est une société basée aux Etats-Unis D'Amerique. Clean Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 367,1 millions US$ (343,1 millions €). La valeur de son action a atteint son plus haut niveau récent le 05 septembre 2014 à 9,99 US$, et son plus bas niveau récent le 13 mars 2020 à 1,05 US$. Clean Energy possède 151 085 558 actions en circulation. |