Natural Gas News: Can Heatwave Overcome Rising Production?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- U.S. Natural Gas Futures: Experienced a volatile week, initially climbing above $3/MMBtu but ultimately succumbing to bearish pressure due to increased production and a less severe heatwave forecast.
- Market Trends: While futures prices declined, cash markets saw a surge as users scrambled for supply ahead of an expected late-June heat spike.
- Factors Contributing to Bearish Sentiment: Comfortable storage levels, robust production in the Lower 48 states, and the completion of the Mountain Valley Pipeline (MVP) contributed to bearish sentiment in futures.
- Potential Bullish Factors: Forecasts predict a heatwave driving up demand for natural gas-fired power generation, potentially supporting cash prices.
- Outlook: Short-term outlook for natural gas futures leans bearish due to ample storage and rising production, but traders should monitor storage reports, pipeline developments, and weather updates for potential shifts in market dynamics.
Analyst Views on XOP
Wall Street analysts forecast XOP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XOP is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 134.630
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Current: 134.630
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
