|Bid||0.00 x 1000|
|Ask||0.00 x 1000|
|Day's Range||24.07 - 24.17|
|52 Week Range||20.40 - 27.92|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.70%|
The natural gas market and related natural gas ETFs may fizzle if the U.S.-China trade war extends. The United States Natural Gas Fund (UNG) has gained 6.5% over the past month and rose 2.3% year-to-date as Nymex natural gas futures now trade at around $2.95 per million British thermal units. In response to the latest round of U.S. tariffs, China proposed a 25% levy on liquefied natural gas, or LNG.
Surging domestic supply hindered natural gas prices over the past several years, but the commodity has recently been a solid performer. Demand expectations could provide some upside for natural gas and the related exchange traded funds. Domestic natural gas inventories are declining, a fundamental factor that could bode well for UNG and the commodity's prices.
On August 14, natural gas September futures rose 1% and settled at $2.959 per MMBtu (million British thermal units)—the highest closing level for active natural gas futures since June 27.
On August 9, September US crude oil futures fell 0.2% and settled at $66.81 per barrel—the lowest closing level for active US crude oil futures since June 21. On the same day, oil-weighted stocks Hess Corporation (HES), Occidental Petroleum Corporation (OXY), and Apache Corporation (APA) fell 2.9%, 4.2%, and 6.2%, respectively—the underperformers on our list.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
On August 7, 2018, natural gas September 2018 futures closed at a premium of ~$0.23 to September 2019 futures. On July 31, 2018, the futures spread was at a premium of $0.14. Between July 31 and August 7, 2018, natural gas September futures rose 4.1%.
On August 7, 2018, natural gas September futures rose 1.3% and settled at $2.897 per MMBtu (million British thermal units), the highest closing level for active natural gas futures since June 29, 2018.
Between July 27 and August 3, the United States Natural Gas ETF (UNG) rose 2.3% while the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) rose 4.6%. These ETFs track natural gas futures.
US natural gas futures increased 1.3% to $2.81 per MMBtu (million British thermal units) on July 26–August 2. The United States Natural Gas ETF (UNG) rose 2.03% during the same period. UNG seeks to track active natural gas futures. The First Trust Natural Gas ETF (FCG) aims to track the performance of an index of companies mainly involved in natural gas exploration and production. FCG fell 1.9% on July 26–August 2. EQT (EQT), Cabot Oil & Gas (COG), and Gulfport Energy (GPOR) fell 8.9%, 6.6%, and 4.9%, respectively, during the same period.
Yesterday, September US crude oil futures rose 1.9% and settled at $68.96 per barrel, while oil-weighted stocks Pioneer Natural Resources (PXD), Oasis Petroleum (OAS), and WPX Energy (WPX) rose 0.5%, 3.8%, and 6.8%, respectively. US crude oil prices were buoyed by a 1.3 MMbbl (million barrel) fall in US crude oil inventories at Cushing, Oklahoma. However, S&P Global Platts estimates that OPEC oil production rose 0.34 MMbpd (million barrels per day) month-over-month to 32.66 MMbpd in July, and that Saudi Arabian oil production rose to 10.63 MMbpd—the highest in almost two years. ...
The S&P 500 Index rose ~0.5% to 2,827.22 on August 2 due to the rise in the technology and consumer staples sectors. Seven out of the 11 key sectors in the S&P 500 rose on August 2.
The S&P 500 rose ~0.49% to 2,816.29 on July 31. Renewed trade negations between the US and China supported the S&P 500. Both of the countries are exploring ways to cool down the tariff war. The SPDR S&P 500 ETF (SPY) rose ~0.5% to $281.33 on July 31. SPY seeks to track the S&P 500 Index’s returns. The S&P 500 rose ~3.6% in July due to strong second-quarter earnings results.
Between July 20 and July 27, the United States Natural Gas ETF (UNG) rose 1.9% while the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) rose 3.9%. These ETFs track natural gas futures.
Hedge funds cut their net long positions in US natural gas futures and options 44.8% to 24,984 on July 17–24. The positions have also fallen ~66% YoY (year-over-year). The reduction could suggest that hedge funds are turning less bullish or more bearish on US natural gas prices. The US CFTC released the latest positions data on July 27.
The S&P 500 Index fell ~0.66% to 2,818.82 on July 27. The index fell due to disappointing second-quarter earnings results from some of the technology companies. Eight out of the 11 key sectors in the S&P 500 fell on July 27.
On July 26, US crude oil September futures rose 0.4% and settled at $69.61 per barrel. On the same day, oil-weighted stocks Pioneer Natural Resources (PXD), Callon Petroleum Company (CPE), and Concho Resources (CXO) had returns of -0.1%, 0.7%, and 1.4%, respectively, while Apache (APA) was unchanged. The small gain in oil prices was not sufficient to support most of these oil-weighted stocks.
PointLogic estimates that US dry natural gas production increased 0.5% to 81 Bcf (billion cubic feet) per day on July 19–25. The production has increased 11% from a year ago.
The S&P 500 Index fell ~0.3% to 2,837.44 on July 26 due to the decline in the communication services and technology sectors. Five out of the 11 key sectors in the S&P 500 fell on July 26.
Noble Energy (NBL) stock has risen since the beginning of this year, mirroring crude oil prices (DBO). Year-over-year, NBL stock has risen ~22.7%, while crude oil prices have surged 46.5% in the same period. Natural gas prices (UNG) have declined 6.14% in the same period.
On July 24, natural gas September 2018 futures closed at a premium of ~$0.10 to September 2019 futures. On July 17, 2018, the futures spread was at a premium of ~$0.09. Between July 17 and July 24, 2018, natural gas September futures rose 0.4%.
The S&P 500 rose ~0.48% to 2,820.40 on July 24—the highest closing since February 1. The index rose due to expectations of strong second-quarter earnings results. Nine out of the 11 key sectors in the S&P 500 rose on July 24.
The S&P 500 Index rose ~0.18% to 2,806.98 on July 23. The rise in the financial sector and expectations of strong second-quarter earnings supported the S&P 500. However, the escalating trade tariff conflict between the US and China and a strong US Dollar Index has restricted the upside for the S&P 500.
Are You Ready for Chesapeake Energy’s Q2 2018 Earnings? Chesapeake Energy (CHK) is scheduled to release its second-quarter earnings on August 1 before the market opens. The company’s second-quarter revenue estimate is ~$2.29 billion. In the second quarter of 2017, Chesapeake Energy reported revenues of $2.28 billion.
The consensus 12-month target price for Dynagas LNG Partners (DLNG) is $11.21. Based on its price on July 18, this target price implies a potential upside of 38.9%.