Natural Gas News – April 5, 2018
Are Supply Concerns Rising for Natural Gas?
Market Realist reported: On April 3, 2018, natural gas May 2018 futures closed at a premium of $0.04 to May 2019 futures. The difference is called the “futures spread.” On March 27, 2018, the futures spread was at a premium of $0.08. During this period, natural gas May futures fell 0.6%. The market sentiment for natural gas’s demand and supply situation is reflected in the futures spread. In the trailing week, the premium declined with a slight fall in natural gas prices. A fall in the premium could mean that the market sees supply rising faster than demand in the near term. The contraction in the premium could hint at more weakness in natural gas prices, which could have a negative impact on natural gas– weighted stocks like Range Resources (RRC), Antero Resources (AR), and Cabot Oil & Gas (COG). On March 27–April 3, 2018, Range Resources, Antero Resources, and Cabot Oil & Gas fell 2.4%, 1.9%, and 1.1%. Natural gas May futures fell 0.6% during this period.
Utica Report Card: Ohio’s Natural Gas Production at Record Levels
IndeOnlline reported: NORTH CANTON Ohio has produced more natural gas than it uses since early 2015. Driven by prolific Utica Shale wells, the state produced a record 1.7 trillion cubic feet of natural gas last year. Much of the regional economic development around that production has been in the form of pipelines and processing facilities. Two interstate natural gas pipelines — Energy Transfer’s Rover project and the NEXUS Gas Transmission pipeline — cross Stark and neighboring counties. Marathon Petroleum also has built or acquired assets in the region to supply its Canton refinery with liquids from Utica Shale wells.