In afternoon trading Friday, Exxon Mobil Corp. shares rose 1.5 percent to an 8-year high, supported by higher oil and gas prices and a positive analyst comment. In afternoon trading, crude oil futures gained 1.4 percent, while natural gas futures gained 0.5 percent. J.P. Morgan analyst Phil Gresh maintained his overweight rating on the oil and gas giant, which he has held since January 2021, and maintained his stock price objective of $108, saying the company’s “re-rating story still has legs.” Following the “de-rating” that occurred during the 2020 downturn, in which the company experienced a record yearly fall of 40.9 percent due to fears about a huge debt burden, Gresh believes the stock still has space for greater investor interest. In a letter to clients, Gresh wrote, “With the firm now fully switched towards a credo of capital discipline and the balance sheet back to a healthy position, is in much better place to return more cash to shareholders, while still pursuing attractive development prospects at key assets.” Investors, he argues, have only given the business a portion of the credit for the turnaround, especially when contrasted to peer Chevron Corp., which Gresh has rated underweight since early March 2022. Exxon Mobil’s stock is on track to close at its highest level since September 2014, with a year-to-date gain of 61.9 percent, compared to 51.6 percent for Chevron and 13.5 percent for the S&P 500.
Why did natural gas prices plummet?
The current price increase is being driven by a decrease in the amount of natural gas held in storage in the United States. According to the US Energy Department, gas in storage was 17% below its five-year average this week. Commodity traders, however, reacted this week to forecasts of hotter weather in the Southwest. Hot weather raises gas prices by increasing demand for air conditioning.
“Weather has the ability to shift these values drastically up and down,” Molchanov said. “If it’s a really hot summer, the price goes up; if it’s a very cold winter, the price goes up.”
Why has the price of natural gas dropped?
Meanwhile, natural gas prices have calmed somewhat in recent weeks despite remaining sharply higher on the year.
Natural gas touched $6.47 per million British thermal units in early October, as fears of a European-style scarcity grew. Since February 2014, this was the highest level.
That rally, however, has completely reversed. On Monday, natural gas plunged 11.5 percent to $3.66 per million BTU, its lowest level since January 2019. It’s the lowest it’s been since July 15th.
The fact that temperatures have been warmer than average in the United States has contributed to natural gas prices falling. As a result, demand for natural gas, the most common form of home heating, has decreased.
“The warmer-than-normal start to winter has soothed fears,” said Christopher Louney, RBC Capital Markets’ vice president of global commodity strategy.
Is it a smart time to invest in natural gas right now?
Natural gas is an important source of energy. We utilize it to generate electricity, heat our houses, and perform a variety of other domestic, commercial, and industrial tasks. It’s the cleanest-burning fossil fuel, and it’s plentiful and inexpensive.
Natural gas is an important “bridge fuel” throughout the energy transition to lower-carbon alternatives because of these qualities. It can assist bridge the gap by producing cleaner baseload electricity and helping to counteract the intermittency difficulties of wind energy and solar power.
Natural gas demand is expected to continue to rise in the coming years due to its unique properties. Natural gas demand is predicted to rise 31% by 2040, outpacing an expected 21% increase in oil demand, according to the International Energy Agency. As a result, it is a crucial market for investors. Here’s how to invest in natural gas equities in more detail.
Why is the price of oil falling today?
Oil prices fell on Friday, heading for a weekly decrease of about 4%, as the likelihood of rate hikes, weaker global growth, and COVID-19 lockdowns in China hampered demand, even as the European Union considered an embargo on Russian oil.
Is Exxon a natural gas producer?
ExxonMobil. In 2020, ExxonMobil (XOM) produced 8.5 billion cubic feet of natural gas per day, the lowest level in seven years and part of a trend. 12 In terms of revenue, it is the largest oil and gas business in the United States.
Are Natural Gas Prices Set to Rise in 2021?
The price in April will be determined by international pricing from January to December 2021. According to AK Jana, managing director of Indraprastha Gas Ltd, every dollar increase in domestic natural gas prices will necessitate a Rs 4.5 per kilogram increase in CNG prices. This translates to a Rs 15 per kg increase in CNG prices.
Is natural gas a viable option?
According to the IEA’s newest quarterly Gas Market Report, which also includes a new medium-term prediction, global gas consumption is predicted to rise by 3.6 percent in 2021 before dropping to an average growth rate of 1.7 percent over the next three years. Demand is expected to increase by 7% by 2024 compared to pre-Covid levels in 2019.
Are Natural Gas Prices Set to Rise in 2023?
The prediction for September 1st is 7.55. The maximum price is $8.33, while the lowest price is $7.53. For the month, the average price was $7.84. Natural gas prices ended the month at $7.93, up 5.0 percent from September.
The prediction for October 1st is 7.93. The maximum price is $8.75, while the lowest price is $7.91. For the month, the average price was $8.23. Natural gas price ended the month at $8.33, up 5.0 percent from October.
The prediction for November 1st is 8.33. The maximum price is $8.33, while the lowest price is $7.51. For the month, the average price was $8.02. Natural gas prices ended the month at $7.91, a -5.0 percent decrease from November.
The prediction for December 1st is 7.91. The maximum price is $8.73, while the lowest price is $7.89. For the month, the average price was $8.21. Natural gas price ended the month at $8.31, up 5.1 percent from December.
The prediction for January 1st is 8.31. The maximum price is $8.31, while the lowest price is $7.50. For the month, the average price was $8.00. Natural gas prices ended the month at $7.89, down 5.1 percent from January.
The prediction for February 1st is 7.89. The maximum price is $7.89, while the lowest price is $7.13. For the month, the average price was $7.60. Natural gas prices ended the month at $7.50, a -4.9 percent decrease from February.
The prediction for the first week of March is 7.50. The maximum price is $7.50, while the lowest price is $6.77. For the month, the average price was $7.23. Natural gas price ended the month at $7.13, down 4.9 percent from March.
The forecast for the first week of April is 7.13. The maximum price is $7.86, while the lowest price is $7.12. For the month, the average price was $7.40. Natural gas prices ended the month at $7.49, up 5.0 percent from April.
The forecast for the first week of May is 7.49. The maximum price is $8.25, while the lowest price is $7.47. For the month, the average price was $7.77. Natural gas prices ended the month at $7.86, up 4.9 percent from May.
The forecast for the first week of June is 7.86. The maximum price is $8.66, while the lowest price is $7.84. For the month, the average price was $8.15. Natural gas price ended the month at $8.25, up 5.0 percent from June.
The forecast for the first week of July is 8.25. The maximum price is $9.09, while the lowest price is $8.23. For the month, the average price was $8.56. Natural gas price ended the month at $8.66, up 5.0 percent from July.
The prediction for August 1st is 8.66. The maximum price is $9.54, while the lowest price is $8.64. For the month, the average price was $8.98. Natural gas prices ended the month at $9.09, up 5.0 percent from August.
9.09 is the forecast for the beginning of September. The maximum price is $9.09, while the lowest price is $8.21. For the month, the average price was $8.76. Natural gas price ended the month at $8.64, a -5.0 percent decrease from September.
The prediction for October 1st is 8.64. The maximum price is $8.91, while the lowest price is $8.07. For the month, the average price was $8.53. Natural gas price ended the month at $8.49, down 1.7 percent from October.
The prediction for November 1st is 8.49. The maximum price is $9.36, while the lowest price is $8.46. For the month, the average price was $8.81. Natural gas price ended the month at $8.91, up 4.9 percent from November.
The prediction for December 1st is 8.91. The maximum price is $8.91, while the lowest price is $8.04. For the month, the average price was $8.58. Natural gas price ended the month at $8.46, down 5.1 percent from December.
The prediction for January 1st is 8.46. The maximum price is $8.46, while the lowest price is $7.64. For the month, the average price was $8.15. Natural gas prices ended the month at $8.04, a -5.0 percent decrease from January.
The prediction for February 1st is 8.04. The maximum price is $8.86, while the lowest price is $8.02. For the month, the average price was $8.34. Natural gas price ended the month at $8.44, up 5.0 percent from February.
The prediction for the first week of March is 8.44. The maximum price is $8.65, while the lowest price is $7.83. For the month, the average price was $8.29. Natural gas price ended the month at $8.24, down 2.4 percent from March.
The prediction for the first week of April is 8.24. The maximum price is $9.08, while the lowest price is $8.22. For the month, the average price was $8.55. Natural gas price ended the month at $8.65, up 5.0 percent from April.
The prediction for the first week of May is 8.65. The maximum price is $9.53, while the lowest price is $8.63. For the month, the average price was $8.97. Natural gas prices ended the month at $9.08, up 5.0 percent from May.
The forecast for the first week of June is 9.08. The maximum price is $9.10, while the lowest price is $8.24. For the month, the average price was $8.77. Natural gas price ended the month at $8.67, down 4.5 percent from June.
Is today a good time to invest in oil stocks?
In 2022, oil is expected to be one of the best-performing asset groups. Oil has surged in value by almost 1,000 percent from hitting lows of about $20 per barrel in 2020. As a result, it may be an excellent moment to obtain exposure to major oil corporations.