| Natural Gas Prices Fell Again ahead of Inventory Report | |
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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.
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Chesapeake Energy Corporation
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DEVELOPMENT STAGE |
CODE : CHK |
ISIN : US1651671075 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Chesapeake Energy is a producing company based in United states of america. Chesapeake Energy develops natural gas and oil in USA. Its main asset in development is DEEP BOSSIER in USA. Chesapeake Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 74.1 billions as of today (€ 66.5 billions). Its stock quote reached its lowest recent point on March 13, 2020 at US$ 0.12, and its highest recent level on November 18, 2022 at US$ 99.94. Chesapeake Energy has 909 242 558 shares outstanding. |