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US Natural Gas Futures Are near a 5-Week High

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Natural gas futures  

October natural gas (BOIL) (UNG) futures contracts trading on NYMEX rose 2% to $3.04 per MMBtu (million British thermal units) on August 31, 2017.

Prices are near a five-week high due to a reported fall in natural gas production, a lower-than-expected rise in US natural gas inventories, and short covering.

Higher natural gas (GASL) (DGAZ) prices have a positive impact on natural gas producers’ earnings like Rex Energy (REXX), Rice Energy (RICE), Exco Resources (XCO), and Antero Resources (AR).

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Highs and lows  

US natural gas active futures prices hit $1.68 per MMBtu on March 4, 2016—the lowest level in 17 years. On the other hand, prices hit $3.99 per MMBtu on December 28, 2016—the highest level in almost three years.

Natural gas prices drivers next week  

In the US, the weather will likely be mild due to Hurricane Harvey, which could pressure natural gas prices next week. However, an expectation of slowing natural gas production due to lower natural gas and crude oil prices in the last few months could support gas next week. Hurricane Harvey also led to a supply outage, which would support prices.

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Natural gas traders calendar 

Some important events for natural gas traders on September 4–8, 2017, are:

  • On September 7, the U.S. Energy Information Administration will release its weekly natural gas inventory report.
  • On September 8, Baker Hughes will release its US natural gas rig count report. 

Series overview  

In this series, we’ll discuss US natural gas inventories, natural gas rig counts, US natural gas production and consumption, and some natural gas price forecasts.

In the next part of this series, we’ll analyze how Hurricane Harvey impacted US weather.

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