30 May

Higher Inventories Might Help Natural Gas Recover

WRITTEN BY Robert Scott FEATURED IN Commodities

Natural gas inventory data

In the week ending May 18, natural gas inventories rose by 91 Bcf (billion cubic feet) to 1,629 Bcf—based on the EIA’s (U.S. Energy Information Administration) data announced on May 24. The increase was 2 Bcf less than what a survey by S&P Global Platts expected. On May 24, natural gas July futures rose 0.5%.

Higher Inventories Might Help Natural Gas Recover

Inventories spread and natural gas prices

In the week ending May 18, the negative difference between natural gas inventories and their five-year average contracted by 1.2 percentage points compared to the previous week. The difference is called the “inventories spread.” For the week ending May 18, the inventories spread was at -23.4%.

In the week ending May 11, the inventories spread was at -24.6%. Natural gas prices are usually inversely related to the inventories spread.

On May 24–29, natural gas July futures fell 2.3%. On May 24, the EIA released the natural gas inventory report for the week ending May 18.

Since May 24, Chesapeake Energy (CHK), Cabot Oil & Gas (COG), and Range Resources’ (RRC) fell 5.9%, 1.9%, and 0.1%, respectively—the underperformers on our list of natural gas–weighted stocks.

On May 24–29, the Fidelity MSCI Energy Index ETF (FENY) and the iShares Global Energy ETF (IXC) fell 2.9% and 3.5%, respectively. These ETFs hold natural gas producer stocks.

Higher inventory levels

On May 31, the EIA is scheduled to release the natural gas inventory report for the week ending May 25. Any rise below 75 Bcf would push the inventories spread into the negative territory—a bullish factor for natural gas prices.

Latest articles

Verizon Communications stock (VZ) closed down 2.09% on Tuesday after the leading US mobile carrier reported mixed results for the first quarter of 2019 before the market bell yesterday.

24 Apr

Nokia’s Patent Business Is Put On the Spot

WRITTEN BY Rachel Gunter

Several European auto companies want Nokia’s (NOK) patent business subjected to an antitrust probe.

The first-quarter semiconductor earnings season has begun, and the stock market is showing bullish sentiment as investors buy ahead of earnings releases.

Netflix (NFLX) is working its way through a series of price increases in several markets, including the United States and parts of Europe.

Netflix (NFLX) is aiming to add 14.6 million paying subscribers in the first six months of 2019.

Earlier today, the second-largest US automaker, Ford Motor Company (F), announced a plan to invest $500 million in Plymouth-based automotive company Rivian.