Natural gas futures
Prices are near three-week highs due to the following factors:
- warm weather
- short covering
- a less-than-expected rise in US natural gas inventories between July 28, 2017, and August 4, 2017
Natural gas highs and lows
- expectations that US natural gas inventories will slow down between August 4 and August 11
- bullish momentum in the S&P 500 Index (SPY) (SPX-INDEX)
- a rise in US natural gas exports
US natural gas futures have fallen 16% YTD (year-to-date) due to mild weather and strong inventory. Bearish drivers for natural gas futures include the following:
- Monthly US natural gas production hit a ten-month high.
- Monthly US natural gas consumption hit a two-year low.
- The US crude oil and natural gas rig count rose more than 100% year-over-year.
Will natural gas bulls overshadow the bears? Read this series for more details on natural gas drivers. Moves in natural gas prices affect gas producers like Rice Energy and Southwestern Energy.
In the next part of this series, we’ll analyze US weather forecasts.