Maintaining the momentum from the final two days of trading last week, natural gas futures on Monday — aided by strength in equities and petroleum futures — continued higher despite the lack of direct bullish fundamentals. The April contract climbed 6.7 cents to close at $4.294.
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Futures Inch Higher on Equities Rebound, Book Squaring
Monday’s test of psychological support at $6, a nip in the air and a strong rebound in equities combined to push November natural gas futures higher on Tuesday. The contract, which expires Wednesday, put in a high of $6.302 before settling Tuesday’s regular session at $6.186, up 6.5 cents from Monday’s close.
Lower Gas Prices Create ‘Compelling’ Takeover Targets in E&P
Exploration and production (E&P) equities are down nearly 15% since early December, but if the current seasonal weather reverts to warmer-than-normal conditions in the next three weeks, share prices likely will be slapped down again in mid-to-late February, which could create “compelling acquisition opportunities,” energy analysts said last week.
Analysts Say Lower E&P Share Prices Create ‘Compelling’ Acquisitions
Exploration and production (E&P) equities are down nearly 15% since early December, but if the current seasonal weather reverts to warmer-than-normal conditions in the next three weeks, share prices likely will be slapped down again in mid to late February, which could create “compelling acquisition opportunities,” energy analysts said Tuesday.
Expert: Gas Market Transparency Ranks Near Equities, Currencies
While natural gas trading is near the top of the market transparency chart, right behind equities and currencies, it loses points for price inefficiency because of the large amount of indexed transactions, according to a study sponsored by the Natural Gas Supply Association (NGSA). The study was done by Peter Locke, associate professor at the M.J. Neeley School of Business at Texas Christian University.