Natural Gas News – March 22, 2018
Natural Gas News – March 22, 2018
Why Rising Oil Rigs Should Concern Natural Gas Bulls
Market Realist reported: The natural gas rig count was 189 in the week ending March 16, 2018—a rise of one rig from the previous week. In 2008, the natural gas rig count made a record high of 1,606. Currently, the natural gas rig count has fallen 88.2% from its record high. From the beginning of 2008 until December 2017, the US natural gas marketed production rose 47.3% based on the EIA’s monthly data. Rising oil production could be behind the rise in natural gas supplies. Usually, natural gas is a by-product of US shale oil production. So, the rising oil rig count could be important for natural gas supplies and a concern for natural gas bulls. The possible upside in the oil rig count could disappoint investors in natural gas–weighted stocks like and Chesapeake Energy (CHK) and Southwestern Energy (SWN)—upstream stocks with at least a 60% production mix in natural gas. In the trailing week, Chesapeake Energy and Southwestern Energy fell 0.3% and 2.9%. Natural gas futures fell 4% during this period. For more on this story visit marketrealist.com or click http://bit.ly/2pucHqh
Natural Gas Price Fundamental Daily Forecast – Traders Expect EIA Report to Show 88 to 91 Bcf Draw
FX Empire reported: Natural gas futures continued to straddle a key short-term technical retracement zone on Wednesday, however, after an early rally failed to gain traction, the market closed lower for the session. The close below the retracement zone is a sign of weakness and indicates that investors will likely be going into Thursday’s U.S. Energy Information Administration’s weekly storage report with a downside bias. Looking ahead to today’s U.S. Energy Information Administration storage report, we are expecting to see a draw of about 91 billion cubic feet in the week ended March 16. For more visit fxempire.com or click http://bit.ly/2pw3U6w
This article is part of Daily Natural Gas Newsletter
Tagged:
MARKET CONDITION REPORT - DISCLAIMER
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
