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Natural Gas’s Surge in November 2017

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Natural gas

On November 6, 2017, natural gas (UNG)(BOIL)(GASL) December futures rose 5.0% and closed at $3.13 per MMBtus (million British thermal units). Bullish weather forecast reports helped natural gas prices surpass the $3.00 mark again.

Between October 30 and November 6, 2017, US crude oil futures rose 5.9%. Over this period, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 0.7% and 0.9%, respectively.

Natural gas futures rose 5.7% over this period. However, natural gas’s impact could be limited over these equity indexes.

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Natural gas–weighted stocks

The list below highlights the natural gas–weighted stocks that had the highest correlations with natural gas active futures in the seven calendar days ended November 6, 2017:

  • Gulfport Energy (GPOR): 55.7%
  • Range Resources (RRC): 50.2%
  • Chesapeake Energy (CHK): 50.2%
  • EQT Corporation (EQT): 44.3%
  • Rice Energy Inc. (RICE): 41.2%

The natural gas–weighted stocks that had the lowest correlations with natural gas futures in the last five trading sessions are:

  • Southwestern Energy Company (SWN): 7.6%
  • Cabot Oil & Gas (COG): 4.5%

We garnered our list of natural gas–weighted stocks from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) but with at least 60% production mix in natural gas.

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