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US Natural Gas Prices Are near 2-Month Highs

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Nov. 20 2020, Updated 12:29 p.m. ET

Natural gas prices 

June natural gas (BOIL) (UGAZ) (UNG) futures contracts fell 1% and settled at $3.23 per MMBtu (million British thermal units) on April 27, 2017. The S&P 500 (SPY) (SPX-INDEX) rose 0.06% on April 27, 2017. Crude oil and natural gas are major parts of the energy sector. The energy sector contributed to ~6.6% of the S&P 500 as of April 28, 2017.

Natural gas prices fell due to the larger-than-expected build in US natural gas inventories and mild weather. However, natural gas prices rose ~23% after hitting a three-month low in February 2017 due to the rise in natural gas exports to Mexico and fall in natural gas inventories in the last two months. Prices are near a two-month high.

Moves in natural gas prices impact natural gas–weighted upstream companies such as Southwestern Energy (SWN), EQT (EQT), Range Resources (RRC), and Memorial Resource Development (MRD).

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US natural gas highs in the last 15 months 

NYMEX natural gas (FCG) (DGAZ) (GASL) active futures hit $3.99 per MMBtu on December 28, 2016—the highest level in the last 25 months. Prices had risen due to the following:

As of April 27, 2017, prices were 19.1% below their December 2016 high. Prices fell due to warmer-than-normal weather for this time of year. For more on how the weather impacted natural gas prices, read the next part of this series.

US natural gas lows in the last 15 months 

US natural gas prices hit a 17-year low of $1.68 per MMBtu on March 4, 2016, due to mild weather, weak demand, strong supplies, and high inventories. As of April 27, 2017, prices have risen 92.3% from their lows on March 4, 2016. They have risen ~12.3% in the last 12 months.

Natural gas prices and moving averages

As of April 27, 2017, US natural gas prices are above their 50-day and 200-day moving averages of $3.1 per MMBtu, respectively. It suggests more bullish momentum for natural gas prices.

We’ll cover more price drivers in the rest of this series.

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