The CFTC (U.S. Commodity Futures Trading Commission) released its weekly “Commitment of Traders” report on August 25, 2017.
The CFTC reported that hedge funds reduced their net bullish positions on US natural gas futures and options contracts by 2,511 contracts to 81,683 on August 15–22, 2017. Hedge funds’ net bullish positions on US natural gas futures and options fell 3% week-over-week. However, they were net short during the same period in 2016.
Moves in natural gas (UNG) (BOIL) (FCG) prices impact natural gas exploration and production companies like Gulfport Energy (GPOR), Rex Energy (REXX), Cabot Oil & Gas (COG), and Comstock Resources (CRK).
US natural gas price forecasts
Aegent Energy Advisors estimates that US natural gas prices won’t exceed $3.06 per MMBtu between September and October. Its also estimates that US natural gas prices won’t exceed $3.38 per MMBtu between November 2017 and March 2018.
The U.S. Energy Information Administration estimates that US natural gas prices could average $3.06 per MMBtu in 2017. The commodity is expected to rise 7.5% to $3.29 per MMBtu in 2018. Prices averaged $2.51 per MMBtu in 2016 and $2.63 per MMBtu in 2015.
Read Hedge Funds Reduce Bullish Bets on US Crude Oil for 2nd Straight Week for more information on crude oil price forecasts.
Read How India’s Crude Oil Imports, Production, and Demand Impact Prices and Will the US and Libya’s Crude Oil Production Weigh on Prices? to learn more.