US Natural Gas Prices Could Recover
US natural gas prices and moving averages
October US natural gas (UNG) (UGAZ) futures are below their 20-day, 50-day, and 100-day moving averages of $3.01, $2.98, and $3.07 per MMBtu (million British thermal units) as of September 21, 2017. Prices are experiencing bearish momentum and could trade lower. Prices are also near a two-week low.
Lower natural gas prices have a negative impact on oil and gas producers’ (XLE) (XOP) earnings like Cimarex Energy (XEC), Southwestern Energy (SWN), Rice Energy (RICE), and Newfield Exploration (NFX).
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US natural gas price forecasts
US natural gas prices averaged $2.63 per MMBtu in 2015 and $2.51 per MMBtu in 2016. According to the U.S. Energy Information Administration, US natural gas prices could average $3.05 per MMBtu in 2017 and $3.29 per MMBtu in 2018. Prices could rise in 2018 due to the rise in natural gas exports and a rise in domestic natural gas consumption.
The World Bank estimates that prices could average $3.17 per MMBtu in 2017 and $3.60 per MMBtu in 2018.
To learn more about crude oil price forecasts, read Hedge Funds Are Turning Bearish on US Crude Oil.
Read Are Crude Oil Futures Signaling a Breakout? and Will OPEC Meeting Overshadow Excess US Crude Oil Supply? for more on crude oil.