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.

How Natural Gas Prices Have Affected COG and Other Energy 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.

Latest articles

Last week (ended August 16) was rough for Canopy Growth (WEED)(CGC) stock. It fell about 14% after the company's fiscal 2020 first-quarter earnings report.

Apple shares rose close to 3% in early hour trading on Monday. So, why is Apple stock trading higher? The market sentiment might have turned positive.

Huawei plans to launch its own mapping service as soon as this October. But Huawei’s Map Kit will initially not be a consumer mapping service.

Ford stock fell 5.2% last week. The fall extended the stock’s decline to 13.3% since its second-quarter results on July 24.

In April, Amazon announced its plan to transform its free two-day shipping program to a free one-day shipping program for its Prime customers.

Cannabis companies face regulatory challenges. Recently, CannTrust (CTST) didn't comply with Health Canada’s regulations.