13 Jun

Analyzing Natural Gas Prices

WRITTEN BY Rabindra Samanta

Natural gas prices

On June 12, natural gas July futures fell 0.3% and settled at $2.94 per MMBtu (million British thermal units). On the same day, Chesapeake Energy (CHK) and Southwestern Energy (SWN) fell 2.2% and 0.2%, respectively, while Cabot Oil & Gas (COG) rose 0.2%. These three stocks were the underperformers on our list of natural gas–weighted stocks.

Analyzing Natural Gas Prices

On June 12, ETFs that follow natural gas futures, the United States Natural Gas ETF (UNG) and the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) fell 0.2% and 0.3%, respectively.

What’s driving natural gas prices?

On June 5–12, natural gas July futures rose 1.7%. During this period, inventory data boosted natural gas prices. However, concerns about rising natural gas production might have kept natural gas under the $3 level since January 31. In the next part, we’ll discuss a key driver for natural gas production.

The National Weather Service’s data suggest higher-than-average temperatures for most of the US in the next six to ten days. Warmer weather could support natural gas prices.

Moving averages

On June 12, natural gas active futures closed 1.6%, 5%, 4.8%, and 2.2% above their 20, 50, 100, and 200-day moving averages, respectively. Natural gas active futures trading above all of the moving averages is a bullish signal for prices.

However, the 200-day moving average at $2.87 is an important support for natural gas prices. If natural gas prices break below this level, a strong downside in natural gas prices might be possible.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.