Why Natural Gas Prices Could Rise this Week



Natural gas last week

Between March 29 and April 5, natural gas May futures rose just 0.1%. Forecasts for lower demand dragged natural gas to $2.64 per MMBtu on April 4, their lowest closing level since February 20.

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Natural gas on April 8

Today at around 9:16 AM ET, natural gas May futures rose ~1% to $2.69 per MMBtu. The outage at Cheniere Energy’s Sabine Pass liquefied natural gas export terminal in Louisiana is over, and the forecast for higher demand might lift natural gas prices this week.

Demand data

According to Refinitv data, the demand in the lower 48 US states is to average around 86.4 Bcf (billion cubic feet) per day up to April 20, compared to 80.5 Bcf per day this week. The natural gas supply should decrease by 0.5 Bcf per day this week from last week.

Impact on energy stocks and ETFs

Any rise in natural gas prices could be important for natural gas–weighted stocks like Range Resources (RRC), Cabot Oil & Gas (COG), Antero Resources (AR), and Chesapeake Energy (CHK). In fact, RRC was among the top five underperformers in the energy space last week.

Last week, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the Energy Select Sector SPDR ETF (XLE) rose 3.5% and 2.9%, respectively. These ETFs include natural gas producer stocks that could be sensitive to natural gas prices.


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