Natural Gas Outlook

XOM, CHK, EOG, UNG

The US Energy Information Administration today reported the US Nat Gas stocks rose by a total of 62 bcf, considerably above the 53-57 bcf increase that analysts had expected.

Nat Gas prices are more than -4.5% lower today, at 2.31/thousand cubic feet, about 0.11/thousand cubic feet lower than a week ago.

The EIA reported that US working stocks of Nat Gas totaled 2.88 trillion cubic feet, about 687 bcf higher than the 5 yr average of 2.2 trillion cubic feet.

Working gas in storage totaled 2.16 trillion cubic feet for the same period a year ago.

US Nat Gas inventories are about 33% higher than they were a year ago and about 31% higher than the 5-yr average. Both figures are lower than they were a week ago.

Exxon Mobil Corp. (NYSE:XOM), the country's largest producer of Nat Gas, is + 0.5% at 80.54 in a 52-wk range of 67.03-87.94.

Cheseapeake Energy Corp. (NYSE:CHK) is + 0.4% at 18.29 in a 52-wk range of 13.32-35.75.

EOG Resources Inc. (NYSE:EOG) is + 0.6% at 95.47 in a 52-wk range of 66.81-119.97.

The US Natural Gas Fund (AMEX:UNG) is off -4.3% at 16.11 in a 52-wk range of 14.25-$50.56. The ETF reflects only Nat Gas futures for the near-month contract and is a reasonable substitute for the commodity price.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.