Natural Gas News: Will Heatwave Propel Prices Above $3.00?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Natural Gas Futures Surge: Natural gas futures rose close to $3 due to hot weather forecasts for late June, despite a bearish government inventory report.
- Demand and Inventory: Cooling demand in the West is expected to ease, but national demand may rise in the third week of June. The latest EIA report showed an injection of 98 Bcf into storage, slightly below the five-year average.
- Production Trends: U.S. dry gas production has been declining since late 2023, with lower inflation-adjusted futures prices and fewer active rigs. Production is expected to remain flat without a price rebound.
- LNG Market: LNG feed gas volumes have decreased, impacted by maintenance at some terminals. Regional price movements varied, with California prices falling and West Texas prices rising.
- Market Outlook: Bullish outlook due to upcoming hot weather increasing demand. Production constraints and summer combustion demand are likely to tighten supplies, supporting higher prices.
Analyst Views on PXJ
Wall Street analysts forecast PXJ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PXJ 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: 34.310
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Current: 34.310
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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.
