Natural gas prices 

NYMEX natural gas (GASL) (FCG) futures contracts for December delivery rose 0.6% to $3.21 per MMBtu (million British thermal units) in electronic trading at 1:10 AM EST on November 10, 2017. In contrast, December 2017 E-Mini S&P 500 (SPY) futures contracts fell 0.05% to 2,582.25 in electronic trading at the same time.

NYMEX natural gas futures are near a six-month high. However, prices have fallen 13.1% year-to-date. Moves in gas prices impact energy producers (VDE) (XLE) like EOG Resources (EOG), Chevron (CVX), Exco Resources (XCO), and Antero Resources (AR).

Cold Weather Might Be the Turning Point for Natural Gas Bulls

Weather forecasts 

Weather forecasting agencies expect that chilly conditions would prevail across the north-central parts of the US for several days. Similarly, the Great Lakes and eastern parts of the US might have unpleasantly cold temperatures for the next several days. The southern parts of the US might have mild weather. Overall, the US weather is expected to be cold for the next few days, which could drive the natural gas demand and gas (UNG) (UGAZ) prices higher.

NOAA predicts that the temperatures this winter will be 13% colder than last winter across the US. In contrast, the US National Weather Service predicts that the temperatures will be warmer than average this winter.

Almost 50% of US domestic households use natural gas for heating and cooling. Changes in temperatures impact natural gas demand and inventories, which impacts US natural gas (DGAZ) (BOIL) prices.

Next, we’ll analyze how inventories impact natural gas prices.

Latest articles

Marathon Petroleum (MPC) stock has been tumbling in Q3, driven by geopolitical tensions, oil price uncertainty, and weaker refining conditions.

This week, AT&T CEO Randall Stephenson noted that AT&T (T) is on track to reduce its leverage multiple to about 2.5x by the end of this year.

Jeff Bezos announced that Amazon had placed an order of 100,000 electric delivery vans from Michigan-based startup Rivian.

Bad news on the trade war front appears to have led to a fall in the broader US equity markets today. Cannabis ETFs were also trading in the red.

Energy Transfer (ET) stock has recovered in the last two trading sessions after investors hammered it on its plans to acquire SemGroup (SEMG).

Software-as-a-service company Datadog (DDOG) made a smashing debut on Wall Street yesterday. After its IPO, DDOG's shares surged 40% in intraday trading.