Natural gas’s fall and energy stocks
Natural gas July futures fell 2.6% yesterday and settled at $2.325 per MMBtu (million British thermal units), just above their three-year low, despite bullish inventory data and demand expected to rise next week. Meanwhile, Cabot Oil and Gas (COG), Antero Resources (AR), and EQT (EQT) rose 0.8%, 2.1%, and 2.3%, respectively. They were the weakest among natural gas–weighted stocks, which rose 2.8% on average despite weak natural gas prices. Oil prices rose 2.2%, boosting COG, AR, EQT, and other natural gas-weighted stocks.
Natural gas on June 14
As of 4:21 AM Eastern Time today, natural gas active futures had risen ~0.4%. Yesterday, the U.S. Energy Information Administration reported that natural gas inventories rose 102 Bcf (billion cubic feet), missing analysts’ expectation by 7 Bcf. The rise could help natural gas prices recover.
Production and demand data
Due to rising temperatures, Refinitiv expects demand in the lower 48 US states to rise by 2 Bcf per day next week from this week’s expected demand of 80.1 Bcf. It estimates US natural gas supplies will rise to 96.6 Bcf per day from 96.2 Bcf per day this week. As demand outpaces production growth, natural gas prices could rise next week.