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Natural gas at six-month lows on cooler weather outlook, Chesapeake -4.7%

  • Chesapeake Energy (CHK -4.7%) suffers sharp losses as natural gas prices tumble to their lowest in nearly six months after weather forecasts over the weekend showed lower than expected temperatures ahead.
  • Cooling patterns expected to hit the U.S. midwest and northeast over the next 6-10 days have investors betting utilities won't need to burn as much natural gas in the weeks ahead, as summer demand for electricity to run air conditioners eases.
  • The absence of extreme heat has helped chip away at a record natural gas shortage following last year's unusually severe winter; last week, the EIA reported an eighth consecutive week of producers adding more than 100B cu. ft. of natural gas to storage.
  • ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, GASX, NAGS, DCNG
Comments (7)
  • flyerguy1300
    , contributor
    Comments (162) | Send Message
     
    6-10 days of cooler weather then right back to the 90's or more. Nat gas will jump back in a few days.
    7 Jul, 04:05 PM Reply Like
  • Jackagain
    , contributor
    Comments (40) | Send Message
     
    NG closed below the $4.25 resistance mark...and there's a 90% chance of an El Nino (cooler summer, much warmer winter ahead).

     

    No reason to jump on NG longs yet. It will range up and down some, but I suspect now it will creep lower as NG supplies increase. I'll wait another month and see if it goes below $4.00 before (maybe) going long. I'm still afraid of that El Nino. Don't expect anything near what we has last winter.
    7 Jul, 04:18 PM Reply Like
  • 153972
    , contributor
    Comments (692) | Send Message
     
    I can't predict the weather but living in Northern Nevada the temperatures all this week per the forecast are high 90s. Since weather in the US normally travels west to east, some hot weather ought to be headed to the Mid-West, South and East.
    7 Jul, 05:00 PM Reply Like
  • Energysystems
    , contributor
    Comments (943) | Send Message
     
    It was a balmy 95 today in DC...Probably not "Nevada" hot, but plenty hot for me!
    7 Jul, 05:56 PM Reply Like
  • flyerguy1300
    , contributor
    Comments (162) | Send Message
     
    Northern Virginia here, 91+ temperature, 96+ heat index
    7 Jul, 07:24 PM Reply Like
  • auto44
    , contributor
    Comments (2970) | Send Message
     
    The sky is falling. The sky is falling. Run for your life. The sky is falling. If you are a long term holder and you let this foolishness influence you, you are in the wrong place.
    7 Jul, 05:31 PM Reply Like
  • Jackagain
    , contributor
    Comments (40) | Send Message
     
    That may be true for stocks like CHK, but not for the traded ETF's listed here. These are bets on seasonal market swings and are not long term holds.
    7 Jul, 10:09 PM Reply Like
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