On November 23–30, natural gas January futures rose 5.9% and settled at $4.61 per MMBtu (million British thermal units) on November 30. The inventories are 19.1% below their five-year average, which might be behind the rise in natural gas prices. In November, natural gas prices rose 39.7%.
According to Reuters, for the next two weeks, Refinitiv analysts reduced the total degree days to 391 on November 30 from 400 on November 29 in the Lower 48 US states. The total degree days are also the same as the 30-year average of 391 for these weeks—a factor that might be a problem for natural gas to continue its bullish momentum in December.
Important price points
This week, natural gas’s 20-day and 50-day moving averages at $4.07 and $3.53 could be an important support zone for natural gas prices.
The upside in natural gas prices could be positive for natural gas–weighted stocks. Southwestern Energy (SWN), Antero Resources (AR), Cabot Oil & Gas (COG), and Gulfport Energy (GPOR), the strongest among the natural gas–weighted stocks, returned -6%, -5.3%, -1.7%, and 0.1% respectively, last week. The remaining natural gas–weighted stocks ended in the red during this period.