Natural gas prices climb as Middle East tensions and cold weather lift demand
Reports point to geopolitical tension, colder conditions and strong export flows as drivers, while other reports note softer flows and a pullback in futures.
Reports say natural gas prices have been pushed to four-year highs as tensions in the Middle East rise. One report adds that US natural gas futures edged higher on colder weather and stronger flows to LNG facilities. Another report, however, says US natural gas futures dipped on lower flows to LNG export plants, so the reports differ on the direction of the latest session. A separate report says record power demand has exposed a divide in the natural gas market, and another says record LNG feedgas lifted futures and outweighed a supply return.
The reports point to a mix of drivers. Several cite Middle East tensions, colder weather and stronger flows to LNG export plants as factors behind the moves. One report points to lower flows to LNG plants as a reason for a dip. The reports do not make the cause clear in a single direction, and they differ on whether the latest session was up or down.
Who feels it: oil and gas exploration and production companies and oil and gas storage and transportation firms can gain when natural gas prices rise. Commodity chemicals, fertilizers and agricultural chemicals, steel, electric utilities and gas utilities tend to pay more or lose margin when the price rises.
In our S&P 500 universe, Eog Resources Inc (EOG) moved +4.23%, Conocophillips (COP) moved +3.37% and Williams Companies, Inc. (WMB) moved +2.98% on the last trading day. Southern Co (SO) moved +2.24% and Duke Energy CORP (DUK) moved +2.18%. One day's move is not proof that the raw material caused it. Headlines change quickly, and company filings are the primary source.
Industries and stocks in this story
| Company | A higher price | Last move |
|---|---|---|
| COP Conocophillips | Tends to help | +3.37% |
| WMB Williams Companies, Inc. | Tends to help | +2.98% |
| EOG Eog Resources Inc | Tends to help | +4.23% |
| SO Southern Co | Tends to cost more | +2.24% |
| DUK Duke Energy CORP | Tends to cost more | +2.18% |
| NUE Nucor Corp | Tends to cost more | +0.63% |
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Educational only, not financial advice. Numbers beside the story are from our own data.