US Natgas Futures Drop 2.7% to Two-Week Low on Storage Build, Slow Output Rise
XOM sits 43% above its 52-week low of $105.525 on light trading volume (0.2× avg).
Summary
US natural gas futures for July delivery fell 2.7% to a two-week low of $3.099 per mmBtu. This decline was driven by a larger-than-expected weekly storage build of 108 billion cubic feet and a slight increase in daily output. Lower LNG export flows, partly due to ongoing maintenance at facilities like ExxonMobil's Golden Pass, also contributed to the price pressure. For Exxon Mobil, a major natural gas producer, this commodity price drop adds further pressure following its reported 46% decline in Q1 earnings and recent production cuts. Sustained low natural gas prices could negatively impact the company's upstream profitability. Traders will watch weather forecasts for demand and the resolution of LNG plant maintenance.
At the time of this announcement, XOM was trading at $150.79 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $625B. The 52-week trading range was $105.53 to $176.41. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.