Natural gas on March 25
On March 25, natural gas May futures rose just 0.3%. The outage at Cheniere Energy’s Sabine Pass liquefied natural gas export terminal in Louisiana and weather forecast data that suggested warmer weather for the next two weeks have limited the upside in natural gas prices.
Weather and demand data
Based on the weather forecast on March 25, the total degree days for the next two weeks moderated from 247 on the previous day to 225, according to Refinitiv data. Analysts at Refinitiv estimated that natural gas demand could fall by an average of 8 billion cubic feet per day this week on a week-over-week basis. These factors will weigh on natural gas prices on March 26.
Impact on energy stocks and the market
The fall in natural gas prices could be important for natural gas–weighted stocks such as Range Resources (RRC), Cabot Oil & Gas (COG), Antero Resources (AR), and Chesapeake Energy (CHK). Broader market indexes such as the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) are also affected by fluctuations in energy commodities.