La vendita allo scoperto per First Trust Natural Gas ETF dà agli investitori un'idea del grado in cui gli investitori stanno scommettendo sul declino delle azioni di First Trust Natural Gas ETF. I dati relativi alle vendite allo scoperto vengono aggiornati ogni due settimane.

First Trust Natural Gas ETF (ARCA:FCG), Report sulle vendite allo scoperto

First Trust Natural Gas ETF

Energy

Other

The fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks, depositary receipts and MLP units that comprise the index. The index is designed to track the performance of mid and large capitalization companies that derive a substantial portion of their revenues from midstream activities and/or the exploration and production of natural gas.

Hess Midstream Lp  Class A Common Stock

Western Midstream Partners Lp

Eog Resources Inc.

Developed Markets Compugroup Medical Ag

Diamondback Energy Inc - Common

Occidental Petroleum Corp.

Devon Energy Co

APA Corporation

Coterra Energy Inc

FIRST COLOMBIA GLD CORP by First Colombia Gold Corp.

First Colombia Gold Corp

FCG INC by FCG, Inc.

FORECASTAGILITY CORP by Forecastagility Corporation

Forecastagility Corp

EQT Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQT#NYSE">EQT</a>) shares are trading higher after the company announced it entered into a definitive deal with funds managed by Blackstone Credit &amp; Insurance (BXCI) to <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n42159491/eqt-announces-3-5-billion-midstream-joint-venture-with-blackstone-credit-insurance" rel="noreferrer noopener">form a new midstream joint venture</a>.
As per the deal, BXCI will provide EQT&nbsp;$3.5 billion of cash consideration in exchange for a non-controlling equity interest in the joint venture.
This values the JV at approximately $8.8 billion, or 12x EBITDA. The deal provides EQT with a substantial equity capital solution at an accretive cost of capital.
EQT will also retain rights to growth projects linked to the contributed assets, including the planned Mountain Valley Pipeline expansion and the MVP Southgate project.
EQT intends to use the proceeds from the transaction to reduce its term loan, revolving credit facility, and redeem or tender senior notes.
Pro-forma for this deal, along with the recent sale of its remaining non-operated assets in northeast Pennsylvania, EQT expects to exit 2024 with approximately $9 billion in net debt.
EQT President and CEO&nbsp;Toby Z. Rice&nbsp;stated, &#8220;This transaction underscores the ultra-high-quality nature of EQT&#8217;s regulated midstream assets, which service one of the strongest power demand growth regions in&nbsp;the United States&nbsp;underpinned by long-term contracts with the region&#8217;s leading utilities.&#8221;
&#8221;Importantly, through this joint venture&nbsp;EQT preserves the benefits of the Equitrans acquisition by retaining the long-term value from synergy capture and growth projects. We look forward to working with Blackstone to optimize the value of these assets and together explore strategic opportunities across its leading portfolio of energy, power and digital infrastructure in the years ahead.&#8221;&nbsp;
EQT Chief Financial Officer&nbsp;Jeremy Knop&nbsp;stated, &#8220;Blackstone is a leader in providing capital solutions to large corporations and we are thrilled to partner with them in this unique transaction, crafting a tailor-made equity financing solution at a price significantly below EQT&#8217;s equity cost of capital while preserving key tax attributes. When we announced the Equitrans acquisition earlier this year, we made an unwavering commitment to debt reduction.&#8221;
&#8221;We have now delivered on that promise, with announced divestitures to date totaling&nbsp;$5.25 billion&nbsp;of projected cash proceeds, above the high-end of our&nbsp;$3 billion-$5 billion&nbsp;asset sale target, and several quarters ahead of schedule.&#8221;
The transaction is subject to customary closing adjustments, required regulatory approvals, and clearances, and is expected to close in the fourth quarter of 2024.
Investors can gain exposure to the stock via Invesco S&amp;P 500 Equal Weight Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPG#NYSE">RSPG</a>) and First Trust Natural Gas ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCG#NYSE">FCG</a>).
Price Action: EQT shares are up 3.22% at $47.40 premarket at the last check Monday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/24/11/41997142/viking-fund-management-sells-big-oil-stocks-in-q3-cuts-tesla-position-in-half-adds-to-largest-position-broadcom" target="_blank" rel="noreferrer noopener">Viking Fund Management Sells Big Oil Stocks In Q3, Cuts Tesla Position In Half, Adds To Largest Position Broadcom</a></li>
</ul>

Equities

Large Cap

News

Movers

First Trust ISE-Revere Natural Gas Index Fund

RSPG

EQT Secures $3.5 Billion Boost: Blackstone JV To Power Midstream Expansion

Woodside Energy Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WDS#NYSE">WDS</a>) shares are trading higher premarket Tuesday after the company reported<a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40567230/woodside-releases-half-year-2024-results" rel="noreferrer noopener"> its first-half FY24 results</a>.
Operating revenue fell 19% Y/Y to $5.99 billion. The company delivered half-year production of 89.3 MMboe (-2% Y/Y), with gas production of 60.9 MMboe (-4% Y/Y) and liquids production of 28.4 MMboe (+2% Y/Y).
EBITDA excluding impairment declined 11% Y/Y to $4.37 billion in the first half of FY24.
Underlying net profit after tax declined 14% Y/Y to $1.63 billion, surpassing the Visible Alpha consensus estimate of $1.38 billion (as per Reuters).
Operating cash flow decreased 19% Y/Y to $2.39 billion, and free cash flow was $740 million in H1 FY24.
Woodside increased its standby debt facilities from $6.05 billion to $6.50 billion. Net debt at the end of the period rose 67% Y/Y to $5.39 billion.
Dividend: The directors declared a fully franked interim dividend of $0.69 per share (-14% Y/Y), reflecting about an 80% payout ratio of underlying NPAT.
CEO Meg O&#8217;Neill said, &#8220;We also made good progress on the Scarborough Energy Project in Western Australia, which is more than two-thirds complete and on track for first LNG cargo in 2026. Work on the Scarborough floating production unit passed a major milestone with structural completion of the topsides.&#8221;
Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39879353/tellurian-shares-soar-on-1-2b-woodside-deal-details" rel="noreferrer noopener">Tellurian Shares Soar on $1.2B Woodside Deal: Details</a>
&#8220;We completed the sale of a 10% non-operating participating interest in the Scarborough Joint Venture (SJV) to LJ Scarborough Pty Ltd (LNG Japan) for $910 million and executed a binding sale and purchase agreement for the sale of a further 15.1% non-operating participating interest in the SJV to JERA.&#8221;
This month, the company disclosed a deal to acquire 100% of OCI Global's equity interests in the Clean Ammonia project under construction in Beaumont, Texas, for $2.35&nbsp;billion&nbsp;on a <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40155180/woodside-expands-clean-energy-footprint-with-2-35b-lower-carbon-ammonia-project-acquisition" rel="noreferrer noopener">cash-free and debt-free basis</a>.
Investors can gain access to the stock via First Trust Natural Gas ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCG#NYSE">FCG</a>).
Price Action: WDS shares are up 2.57% at $18.39 premarket at the last check Tuesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40440534/woodsides-scarborough-project-moves-forward-after-legal-win-details" target="_blank" rel="noreferrer noopener">Woodside&#8217;s Scarborough Project Moves Forward After Legal Win: Details</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Earnings

Media

Why Is Woodside Energy Stock Trading Higher Tuesday?

Editor&#8217;s note: This story has been updated to correct the time of Occidental&#8217;s earnings call.
Occidental Petroleum Corp.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) second-quarter earnings <a href="https://www.benzinga.com/news/earnings/24/08/40234994/occidental-petroleum-q2-earnings-highlights-warren-buffett-favorite-beats-revenue-eps-estimates">exceeded analyst expectations</a> after Wednesday&#8217;s close, but analysts still gave the oil and gas company a neutral outlook.
Occidental reported second-quarter revenue of $6.82 billion, which beat a Street consensus estimate of $6.80 billion, according to data&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent080724&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">from Benzinga Pro.</a>
Quarterly earnings per share of $1.03 beat analysts&#8217; estimates of 77 cents per share.
&#8220;We rate Occidental Petroleum (OXY) Neutral due to its more levered balance sheet, the slowing of its chemicals business, its lower long-term production growth rate vs. peers, and its strategy of selling assets in a weaker environment,&#8221; Roth Capital Partners analyst Leo Mariani wrote in a note.
But he also noted Occidental&#8217;s Chemicals sector posted $296 million in pre-tax income, which was in line with its prior guidance of $300 million as the company beat analyst expectations.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/07/40041734/occidental-sells-certain-delaware-basin-assets-boosts-debt-reduction-efforts">Occidental Sells Certain Delaware Basin Assets, Boosts Debt Reduction Efforts</a>
He also pointed out its MidStream segment registered $49 million in pre-tax earnings, after excluding $67 million in one-time items and non-cash losses, which was $184 million higher than the midpoint of its previous guidance of $85 million to $185 million in pre-tax losses.
&#8220;Overall, we expect OXY to have a positive reaction vs. peers.&#8221;
Scotiabank analyst Paul Cheng also acknowledged the earnings beat and assigned a Sector Outperform rating to the stock while noting the performance of the OxyChem and Upstream divisions was in line with Wall Street expectations.
&#8220;We think OXY's 2Q24 results will have a neutral impact on near-term share price performance,&#8221; he wrote in a note.
&#8220;The bulk of the positive variance was driven by the significant Midstream beat.&#8221;
Occidental is scheduled to have an earnings call with analysts at 1 p.m. E.T. Thursday.
Price Action: Occidental gained 4.05% to $58.38 by Thursday&#8217;s mid-day trading, while exchange-traded funds that track the stock also trended upward.
<ul>
<li>Texas Capital Texas Oil Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>) ticked up 0.72%</li>
<li>First Trust Nasdaq Oil &amp; Gas ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXN#NASDAQ">FTXN</a>) gained 2.01%</li>
<li>Invesco S&amp;P 500 Equal Weight Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPG#NYSE">RSPG</a>) edged up 1.83%</li>
<li>First Trust Natural Gas ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCG#NYSE">FCG</a>) went up 2.57%</li>
<li>TCW Transform Systems ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NETZ#NYSE">NETZ</a>) improved 1.46%</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40227137/stock-of-the-day-has-the-stage-been-set-for-occidental-petroleum-to-move-higher">Stock Of The Day: Has The Stage Been Set For Occidental Petroleum To Move Higher?</a></li>
</ul>
Photo: Shutterstock

Analyst Color

Earnings Beats

Commodities

ETFs

FTXN

Engine No. 1 ETF Trust Engine No. 1 Transform Climate ETF

NETZ

OILT

Stuck In Neutral: Occidental Petroleum Beat EPS Consensus But Faces Slowing Business, Analyst Says (CORRECTED)

Prompt-month natural gas futures have exceeded $3 per million British thermal units on Monday, marking the highest level since mid-January 2024 and hitting a potential four-day winning streak, spurred by forecasts predicting increased cooling demand due to anticipated <a href="https://www.benzinga.com/topic/natural-gas">warm weather in June.</a>
Last week, natural gas prices rose by 12.8%, and are currently eyeing the seventh week of gains out of last eight.
&#8220;With a blanket of heat stalling over the southern part of the country, market bulls maintained control,&#8221; said Jodi Shafto, senior natural gas reporter at Natural Gas Intel.
Chart: US Natural Gas Price Have Rallied 95% Since Late April&#8217;s Lows
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/10114654/image-25-1024x500.png" alt="" class="wp-image-380056" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/10114654/image-25-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/10114654/image-25-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/10114654/image-25-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/10114654/image-25-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/10114654/image-25.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
NatGasWeather highlighted that much of the country is expected to experience temperatures ranging from the upper 70s and 80s in the Midwest and Northeast to the upper 80s and 90s elsewhere, with extreme heat in California and Texas reaching the mid-100s.
The American forecast model predicts significantly above-average temperatures from Monday, June 17 to Monday, June 24. 
"Either way, the pattern is hot enough for stronger-than-normal demand," NatGasWeather said. This trend is anticipated to reduce natural gas storage surpluses to around 450 billion cubic feet (Bcf) or slightly below by the end of the month, according to NatGasWeather.
In the week ending May 31, U.S. utilities added 98 Bcf of gas to storage, surpassing market expectations of an 89 Bcf increase. This was the ninth consecutive week of seasonal storage increases, bringing the total stockpiles to 2,893 Bcf. This level is 373 Bcf higher than the same period last year and 581 Bcf, or 25%, above the five-year average of 2,312 Bcf.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The weekend GFS lost a few CDDs, although the ECMWF gained a few. Both forecast light to moderate national demand through Thursday but then both are quite hot with the US pattern for the 3rd week of June, just with the EC numerous CDDs hotter compared to the GFS. <a href="https://twitter.com/hashtag/natgas?src=hash&amp;ref_src=twsrc%5Etfw">#natgas</a> <a href="https://t.co/d28vw0jcka">pic.twitter.com/d28vw0jcka</a>
&mdash; NatGasWeather.com (@NatGasWeather) <a href="https://twitter.com/NatGasWeather/status/1799878153105715478?ref_src=twsrc%5Etfw">June 9, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers In The Energy Sector</h3>
Companies involved in the natural gas market outperformed oil-related stocks on Monday. 
<ul>
<li>Tellurian Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TELL#NYSE">TELL</a>) skyrocketed 13.5%, extending a 5-day rally started last week following rumors that Saudi giant Aramco was in discussion with the company for a liquified natural gas (LNG) project. </li>
<li>Ring Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REI#NYSE">REI</a>) rallied 3.9%</li>
<li>Comstock Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRK#NYSE">CRK</a>), soared 3.8%</li>
<li>Matador Resources Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTD#NYSE">MTD</a>) was up 3.7%</li>
<li>Antero Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AR#NYSE">AR</a>) rose 3.5%.</li>
<li>Obsidian Energy Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OBE#NYSE">OBE</a>) was 3.1% higher. </li>
</ul>
The United States Natural Gas Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNG#NYSE">UNG</a>), which mirrors the performance of Henry Hub natural gas prices, increased by 4.7%, while the First Trust Natural Gas ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCG#NYSE">FCG</a>), tracking the performance of 48 natural gas companies, rose by 2%.
The broader Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) rose 1.1%. 
Read now: <a href="https://www.benzinga.com/markets/equities/24/05/38968653/exxons-texas-lng-project-faces-major-setback-as-lead-contractor-files-for-bankruptcy">Exxon&#8217;s Texas LNG Project Faces Major Setback As Lead Contractor Files For Bankruptcy</a>
Image generated using artificial intelligence via Midjourney.

Macro Notification

Mid Cap

Sector ETFs

Small Cap

Econ #s

Economics

TELL

US Natural Gas Prices Rise To 5-Month Highs On Hot Weather Forecasts: Energy Stocks On The Move Monday

European investigators probing the Nord Stream natural gas pipeline sabotage say that the Polish officials have been slow to share information and have withheld key evidence related to the movements of alleged&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/02/30840477/nord-stream-blast-european-investigators-trying-to-cover-up-says-russia" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">saboteurs on Polish soil</a>.
Officials investigating the attack, which occurred in&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/22/09/29046190/watch-nord-stream-leaks-cause-1-kilometer-of-gas-bubbles-in-the-baltic-sea" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">September 2022</a>, suspect the involvement of a Ukrainian crew, potentially operating through Poland.&nbsp;
However, the lack of complete cooperation from Polish authorities has hindered efforts to ascertain whether the attack had any connection with the former Polish government.
With a new government in office since December, senior European officials are considering contacting&nbsp;Donald Tusk, Poland&#39;s new prime minister, hoping for improved collaboration.
While investigators haven&#39;t directly linked the Polish government to the explosions, their obstruction has fueled suspicions, the Wall Street Journal&nbsp;<a class="editor-rtfLink" href="https://www.wsj.com/world/europe/nord-stream-probe-faces-resistance-from-poland-962aa5f9?mod=latest_headlines" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">noted</a>.&nbsp;
Most Western security officials believe a Ukrainian crew was involved, although both Ukraine and Russia have&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/02/30937747/russia-slams-us-for-nord-stream-pipelines-destruction-demands-proof-of-non-involvement" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">denied any participation</a>.
Citing European officials, the WSJ reported that while prosecutors and the border guard in Poland cooperated during the investigation, representatives from the internal security agency ABW and other branches avoided answering questions, provided confusing information, or gave conflicting details regarding the case.
The investigation revealed that a leisure yacht named Andromeda, with a crew suspected of involvement, made stops in several countries, including Poland.&nbsp;
However, Polish authorities delayed sharing vital information until pressed by German counterparts, creating further skepticism.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons

Government

Legal

Markets

General

BOIL

DGAZ

KOLD

Nord Stream Sabotage Investigation: Polish Authorities' Accused Of Lack of Transparency

Global energy prices fell on Monday, with Brent crude dipping back below $80 a barrel after OPEC+ rescheduled its meeting — originally planned for Sunday — to <a href="https://www.benzinga.com/news/23/11/35879641/opec-to-discuss-deeper-production-cuts-to-underpin-volatile-oil-prices">later this week</a>.
In early trade, Brent crude was down 1.2% at $79.50 a barrel, while Nymex West Texas Intermediate fell 1.2% to $74.61 a barrel. The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), an exchange traded product that tracks the price of light sweet crude, was down 1.7% in pre-market trade at $69.60.
OPEC+, the 13 permanent members of the oil producing cartel plus allies including Russia, will meet on Thursday to discuss output quotas. Given Monday&#8217;s price action, oil traders appeared to be backing the likelihood that very little will change in a market that is currently amply supplied.
&#8220;Global energy markets have been flooded with supply so far in November, which coincided well with lower demand across the gas and oil complex,&#8221; said Joe DeLaura, global energy strategist at Rabobank.
Also Read: <a href="https://www.benzinga.com/news/23/11/35944917/crude-oil-prices-fall-as-opec-meeting-postponed-over-angola-and-nigeria-spat">Crude Oil Prices Fall As OPEC+ Meeting Postponed Over Angola And Nigeria Spat</a>
<h2 class="wp-block-heading">US Stockpiles Surge On Record Production</h2>
Last week&#8217;s U.S. crude oil inventories data showed a larger-than-expected build in stockpiles of 8.7 million barrels thanks to stronger imports and record high domestic production of 13.2 million barrels a day. Consensus expectations was for a build of 100,000.
DeLaura added that demand was being affected by warmer weather than usual for key markets in the Northeast region.
Warmer weather also affected the price of gas, with U.S. Natural Gas Futures down 4.2% at $2.872 per million British thermal units. The First Trust Natural Gas ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCG#NYSE">FCG</a>), an exchange traded fund that tracks the performance of the ISE-Revere Natural Gas Index, was down 2.6% at $24.36.
The OPEC+ meeting was rescheduled from Sunday after the group was delayed by a dispute with African producers Nigeria and Angola over their current quotas, which both countries claimed were too low. OPEC+ said over the weekend that the discussions were close to resolution, which likely means more supply from Africa will hit the markets in the coming weeks.
<h2 class="wp-block-heading">Russia And Saudi Could Go It Alone On Deeper Cuts</h2>
At Thursday&#8217;s meeting, some inside sources have reported, Saudi Arabia and Russia will be looking to expand production cuts by a further 1 million barrels a day over the 5 million b/d curbs already in place.
&#8220;Clearly, if we do not see this, it would put further downward pressure on the market, given the surplus over 1Q24. We believe that the Saudis will roll over this cut and there is a growing possibility that we see a deeper cut from the broader group,&#8221; said Warren Patterson, head of commodities strategy at ING.
Markets have remained bearish for some time, however. Brent crude ended last week only fractionally lower, but it marked the fifth-consecutive week of losses. Since its 2023 peak of $97.69 in September, Brent has fallen by 18.5%.
DeLaura added: &#8220;We expect a continuation of current supply cuts would be slightly bearish for Brent and WTI in the near term, while further cuts would see a small spike in prices, but also signal to the market that the weak demand and global macro deterioration is being recognized.&#8221;
Now Read: <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/03/31474139/fat-profits-of-exxon-chevron-co-to-get-fatter-oil-big-winner-thanks-to-chinas-reopening">Fat Profits Of Exxon, Chevron &amp; Co. To Get Fatter?</a>
Photo: Shutterstock

Oil Prices Dip As OPEC+ Showdown Over African Quota Dispute Fuels Market Uncertainty

A subsea gas pipeline and a telecommunications cable connecting Finland and Estonia under the Baltic Sea have suffered damage in what appears to be a deliberate act, according to the Finnish government.&nbsp;
The Balticconnector gas pipeline was shut down due to concerns about gas leakage from a hole in the 77-kilometer pipeline, and it may take months to repair. Additionally, the damaged telecommunications cable raised concerns about connectivity in the region.
While Finnish Prime Minister&nbsp;Petteri Orpo&nbsp;described the damage as &quot;worrying,&quot; he assured Finland&#39;s energy supply remained stable. He also highlighted that it was premature to conclude the cause of the damage, and an investigation is underway.
European gas prices surged in response to the news, reaching a six-month high, Reuters noted, fueled by concerns over tensions in the Middle East and the belief that external activity may have caused the pipeline damage.&nbsp;
Despite the damage, the Balticconnector pipeline gas system operators do not foresee shortages, and Finland&#39;s alternative gas supply arrangements are expected to cover demand.
While the exact cause of the damage remains unclear, authorities are not ruling out the possibility of sabotage, drawing parallels with deliberate acts of sabotage on the Nord Stream gas pipelines in 2022. Finland has diversified its gas imports, primarily relying on liquefied natural gas (LNG) from the United States.
Finnish telecommunications operator Elisa confirmed that the damaged cable, primarily used for backup purposes, did not disrupt its services, providing a measure of continuity.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Suspected Deliberate Act Damages Subsea Gas Pipeline and Telecom Cable Linking Finland And Estonia

In response to rising gasoline price concerns,&nbsp;Tai Milder, the director of California&#39;s Division of Petroleum Market Oversight (DPMO), has&nbsp;<a class="editor-rtfLink" href="https://www.energy.ca.gov/news/2023-09/state-officials-provide-update-gas-prices-unusual-petroleum-market-transaction" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">sent</a>&nbsp;a four-page letter to Governor&nbsp;Gavin Newsom&nbsp;and legislative leaders in Sacramento.&nbsp;
Milder&#39;s division reviewed recent data, revealing that some refineries failed to maintain adequate gasoline levels or import enough fuel to compensate for production shortfalls during the summer.&nbsp;
These supply disruptions have contributed to the surge in prices and planned and unplanned refinery outages.&nbsp;
One specific event highlighted in the letter is an &quot;unusual transaction&quot; on the California spot market, where gas prices surged by 50 cents per gallon on September 15.
The rising cost of crude oil has driven up prices not just in California but across the world. For the last 18 months, Russia&#39;s invasion of Ukraine has caused crude oil prices to climb and remain&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/money/most-volatile-stocks/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">volatile</a>.&nbsp;
As of September 20, 2023, crude oil obtained by California refiners from a global market cost $2.27 per gallon, compared with $2.25 one week ago, $2.04 four weeks ago, and $2.18 one year ago.
DPMO contacted refineries to discuss plans for future maintenance and plans to backfill to maintain adequate statewide supply.

California Faces Rising Gasoline Prices, Division of Petroleum Market Oversight Raises Concerns

Workers at&nbsp;Chevron Corporation&#39;s&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>) liquefied natural gas (LNG) projects in Australia went on strike on Friday after mediation talks ended without any deal.
Partial strikes began at 1 p.m. Perth time at Chevron&#39;s Gorgon and Wheatstone facilities, which accounted for about 7% of global LNG supply last year and&nbsp;<a class="editor-rtfLink" href="https://www.afr.com/companies/energy/game-on-chevron-unions-strike-at-lng-plants-as-talks-go-bust-20230908-p5e35q" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">around</a>&nbsp;47% of Western Australia&#39;s domestic gas.
Until next Wednesday, workers will stop work for up to 11 hours in several blocks daily and refuse to perform certain tasks.&nbsp;
If there is still no deal by then, Members of the Offshore Alliance union&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/business/chevron-australia-lng-workers-start-strike-what-happens-now-2023-09-08/" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">said</a>&nbsp;they would stop work completely for two weeks starting September 14.
The commencement of industrial action signifies the conclusion of protracted discussions that have left markets uncertain for weeks.&nbsp;
In early August, labor unions initially hinted at the possibility of strikes affecting both the Chevron installations and those of&nbsp;Woodside Energy Group Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wds#NYSE">WDS</a>).&nbsp;
Subsequently, Woodside reached a negotiated settlement with its workforce, while Chevron and its employees still find themselves at odds regarding several critical demands.
Chevron&#39;s &quot;bargaining performance has been the most inept effort of any employer the union has dealt with in the past five years, and our members have had enough,&quot; Bloomberg&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2023-09-08/australia-lng-workers-to-begin-strikes-friday-at-chevron-sites?sref=TBDibEcD" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">noted</a>, citing Offshore Alliance&#39;s Facebook post.
A prolonged strike could disrupt exports and raise prices of LNG, which is used for electricity generation. European gas prices have been <a href="https://www.benzinga.com/money/most-volatile-stocks/">volatile</a> in recent weeks over the labor unrest in Australia.
European benchmark gas futures surged by as much as 11% in response to the news, although they later receded somewhat. This reaction underscores the market&#39;s susceptibility, especially after last year&#39;s energy crisis.
Dutch front-month gas, Europe&#39;s benchmark, traded 5.8% higher at &euro;34.64 a megawatt-hour by 10 a.m. in Amsterdam.
While Europe rarely receives fuel shipments from Australia, reducing LNG deliveries to Asia would intensify competition for other available cargoes.
Price Action:&nbsp;CVX shares are up 0.35% at $167.22 during the premarket session on the last check Friday.

Eurozone

Gas Prices Jitters As Strikes Start At Major Chevron Australia LNG Projects

European natural gas prices extended their fall on Tuesday as mild weather and abundant stockpiles eased <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28918945/with-utility-bills-on-the-rise-this-analysts-sees-a-42-return-headed-into-2023">concerns about shortages</a>. The benchmark futures fell as much as 6.4% to the lowest level since late July, according to a <a href="https://www.bloomberg.com/news/articles/2022-10-04/european-gas-drops-as-mild-weather-and-stockpiles-ease-concerns#:~:text=European%20natural%20gas%20prices%20extended%20declines%20as%20mild,6.4%25%20to%20the%20lowest%20level%20since%20late%20July">report </a>in Bloomberg.
What Happened: Some forecasters anticipate higher-than-normal temperatures in the U.K. and continental Europe in the next two weeks, which may lead to a delay in withdrawals from gas inventories for heating, the <a href="https://www.bloomberg.com/news/articles/2022-10-04/european-gas-drops-as-mild-weather-and-stockpiles-ease-concerns?srnd=markets-vp&amp;leadSource=uverify%20wall">report </a>said.
These might be indications that the area can survive the winter even with dwindling Russian supplies.
See Also: <a href="https://www.benzinga.com/money/best-oil-etfs">The Best Oil ETFs Of 2022</a>
The Dutch front-month gas futures, which is a benchmark for Europe, dropped 4.7% to &euro;162 a megawatt-hour. It had declined 10% on Monday.
Why It&#39;s Important:&nbsp;Reserves have filled at a stable pace through the summer as countries increased imports of liquefied natural gas and pipeline supplies from Norway to counter the loss of Russian flows, the report said.&nbsp;Storage sites were nearly 88% full on Saturday, just above the five-year average for this time of year, it added.
Interestingly, Russian energy giant Gazprom PJSC (OTC: <a class="ticker" href="https://www.benzinga.com/stock/ogzpy#OTC">OGZPY</a>) <a href="https://www.benzinga.com/government/22/10/29129816/russia-owned-energy-giant-strikes-deal-with-pro-putin-hungary-government-after-stopping-supply-to-it">is set to permit</a> Hungary to delay payments for natural gas if necessary, as surging imports threaten to derail the country&rsquo;s strained budget. The move comes days after the company suspended natural gas deliveries to Italy in an apparent tussle over regulation in Austria.
Price Action: The United States Natural Gas Fund, LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ung#NYSE">UNG</a>) has gained over 75% this year while the First Trust Natural Gas ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fcg#NYSE">FCG</a>) gained over 35% in 2022.
Read Next: <a href="https://www.benzinga.com/general/22/10/29125182/oil-and-gas-stocks-are-soaring-monday-heres-why">Oil And Gas Stocks Are Soaring Monday: Here&#39;s Why</a>

Global

OGZPY

Mild Winter Ahead In Europe? Here's What Natural Gas Prices Are Reflecting

Russian energy giant&nbsp;Gazprom PJSC&nbsp;(OTC:&nbsp;<a href="https://www.benzinga.com/stock/ogzpy#OTC" target="_blank">OGZPY</a>) will reportedly permit Hungary to delay payments&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/22/09/29039315/these-2-high-yielders-are-set-to-benefit-from-a-frozen-winter-as-the-russia-ukraine-war-" target="_blank">for natural gas</a>&nbsp;if necessary, as surging imports threaten to derail the country&rsquo;s strained budget.&nbsp;
The move comes days after the company suspended natural gas deliveries to Italy in an apparent tussle over regulation in Austria.
What Happened: Hungary has won a three-year delay on gas bills coming due in the next six months,&nbsp;<a href="https://www.bloomberg.com/news/articles/2022-10-03/hungary-strikes-deal-with-gazprom-as-gas-bill-threatens-economy?srnd=markets-vp&amp;leadSource=uverify%20wall" target="_blank">reported&nbsp;</a>Bloomberg citing the&nbsp;Economic Development Ministry.
Also Read:&nbsp;<a href="https://www.benzinga.com/money/best-natural-gas-etfs-right-now" target="_blank">Best Natural Gas ETFs Right Now</a>
At &euro;300 ($292) per megawatt-hour, that would amount to &euro;3.5 billion to &euro;4.5 billion, the report said, quoting the ministry. The agreement is between Gazprom and Hungary&rsquo;s state-owned energy company&nbsp;MVM Zrt.
Natural gas prices in Europe dropped, with the benchmark futures declining 10%, in the wake of signs the continent will be able to navigate this winter with sufficient inventories, an influx of LNG and steps taken by the European Union to contain the crisis.
Owing to the war in Ukraine and supply issues, natural gas prices have witnessed bouts of volatility this year, hitting their peak in August before prices dropped.&nbsp;
Price Action:&nbsp;The&nbsp;United States Natural Gas Fund, LP&nbsp;(NYSE:&nbsp;<a href="https://www.benzinga.com/stock/ung#NYSE" target="_blank">UNG</a>) has gained over 75% this year while the&nbsp;First Trust Natural Gas ETF&nbsp;(NYSE:&nbsp;<a href="https://www.benzinga.com/stock/fcg#NYSE" target="_blank">FCG</a>) gained over 35% in 2022. Gazprom shares closed 0.86% down in Russia.
Why It Matters: The development comes as a much-needed relief for Hungary as billions of euros in EU funding are locked over concerns about corruption under Prime Minister&nbsp;Viktor Orban,&nbsp;according to the report. International reserves are not enough to cover at least three months of imports and the Hungarian currency forint is trading at an all-time low despite the EU&rsquo;s highest key interest rate, partly due to Hungary&rsquo;s dependence on imported Russian gas, it said.
The cost of oil and gas imports surged to an estimated $19 billion this year from $4 billion in 2019, the report said citing government data.
According to Finance Minister&nbsp;Mihaly Varga, additional purchases of natural gas from Gazprom, on top of Hungary&rsquo;s long-term contract, will lead to an extra cost of 740 billion forints ($1.7 billion) this year and widen the budget deficit to 6.1% of gross domestic product from a targeted 4.9%, the report said.
Interestingly, Turkish officials have&nbsp;<a href="https://www.bloomberg.com/news/articles/2022-10-03/turkey-asks-russia-to-delay-its-gas-payments-until-2024?leadSource=uverify%20wall" target="_blank">asked&nbsp;</a>Russia to delay a portion of the country&rsquo;s payments due for natural gas, according to a Bloomberg report.
Read Next:&nbsp;<a href="https://www.benzinga.com/news/22/09/29046190/watch-nord-stream-leaks-cause-1-kilometer-of-gas-bubbles-in-the-baltic-sea" target="_blank">Watch: Nord Stream Pipeline Leaks Cause 1-Km Of Gas Bubbles In Baltic Sea; Germany, Denmark, Sweden Allege Sabotage</a>
&nbsp;

Politics

Russia-Owned Energy Giant Strikes Natural Gas Deal With Pro-Putin Hungary After Stopping Supply To Italy

CNBC&rsquo;s &quot;Fast Money: Halftime Report&quot; delivers market-moving news to investors.
The commentary delivered by hosts of the show often moves the stocks mentioned. The information is collected and refined using <a href="https://benzinga.grsm.io/register174">Benzinga Pro&rsquo;s</a> News Tool. Benzinga Pro users can access this information by using the News tool on any workstation.
<a href="https://ritholtzwealth.com/">Ritholtz Wealth Management</a> CEO Josh Brown bought the following stocks:
Uber Technologies Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uber#NYSE">UBER</a>)
Cheniere Energy, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lng#NYSE">LNG</a>)
Call of the day: Semiconductors
Applied Materials, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amat#NASDAQ">AMAT</a>)
Analog Devices, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adi#NASDAQ">ADI</a>)
Micron Technology, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>)
Lam Research Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lrcx#NASDAQ">LRCX</a>)
Final trades:
Industrial Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xli#NYSE">XLI</a>)
Uber Technologies Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uber#NYSE">UBER</a>)
First Trust Natural Gas ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fcg#NYSE">FCG</a>)
Edison International (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eix#NYSE">EIX</a>)

Trading Ideas

AMAT

LRCX

UBER

Uber, Micron Are CNBC 'Fast Money' Mentions, And This Sector Is Call Of The Day

Due to the coronavirus outbreak, a slew of companies are making negative earnings revisions and the carnage isn&#39;t limited to withdrawn guidance by some big name technology companies.
Some exchange traded funds have large concentrations of components that are making downward revisions. For example, the Amplify Advanced Battery Metals and Materials ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/batt#NYSE">BATT</a>) downbeat earnings revision tally is close to 48%, <a href="https://www.etfrc.com/index.php">according to the ETF Research Center</a>.
&ldquo;Estimate revisions are an important metric we monitor because they tell us how the analysts who follow companies the closest are changing their thinking,&rdquo; says ETFRC. &ldquo;Analysts being an optimistic bunch, they tend to overestimate a company&#39;s earnings at the start of each year, so negative estimate revisions as the year progresses are normal and widespread.&rdquo;
Here are three other ETFs chock full of negative earnings guidance.
See Also: <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/02/15418441/3-safe-etfs-if-a-stock-market-correction-comes-calling">3 Safe Harbor ETFs</a>
<h3>First Trust NYSE Arca Biotechnology Index Fund (FBT)</h3>
Investors thinking the coronavirus would be a salve for biotechnology stocks and ETFs have learned a hard lesson and the First Trust NYSE Arca Biotechnology Index Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fbt#NYSE">FBT</a>) has proved as much. FBT, one of the largest biotech ETFs, is lower by almost 6% over the past week, far worse than 4.15% shed by the NASDAQ Biotechnology Index over the same period.
The negative earnings revision tally for FBT is 35%, second only to BATT.
<h3>Invesco Dynamic Energy Exploration &amp; Production ETF (PXE)</h3>
The only thing surprising about the inclusion of the Invesco Dynamic Energy Exploration &amp; Production ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pxe#NYSE">PXE</a>) on this list is that there are several ETFs in between it and the worst spot. The downbeat earnings revision tally for the moribund PXE is 17.2%, according to ETFRC.
The fund is down 17.73% over the past week and almost 35% year-to-date and entered Thursday 47.2% below its 52-week high. As <a href="https://finviz.com/quote.ashx?t=PXE&amp;ty=c&amp;ta=1&amp;p=d">the chart indicates</a>, PXE is in a death spiral.
<h3>First Trust Natural Gas ETF (FCG)</h3>
Death spiral part II with the First Trust Natural Gas ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fcg#NYSE">FCG</a>), which is to say don&#39;t be fooled by the 4.34% yield on this fund. If the 14.4% negative earnings revisions doesn&#39;t scare an investor away, the 35% year-to-date decline should.
Following FCG&#39;s close at $7.83 on Wednesday, further losses from here make a reverse split a very real possibility.

Short Ideas

BATT

First Trust NYSE Arca Biotechnology Index Fund

PowerShares ETF Trust Dynamic Energy Exploration & Production Port

3 ETFs Chock Full Of Companies With Negative Earnings Revisions

The S&amp;P 500 is lower by nearly 8 percent on a year-to-date basis, indicating it&#39;s going to take a lot of work in a short amount of time for the index to close 2018 on an upbeat note.
There are over 2,200 exchange traded funds and exchange traded notes listed in the U.S. As of Dec. 26, nearly 1,900 of those products are <a href="https://finviz.com/screener.ashx?v=111&amp;f=ind_exchangetradedfund,ta_perf_ytddown&amp;ft=3">down year-to-date</a>. The list of the worst offenders, those ETFs down 50 percent or more, is small and littered with leveraged products.
Trim the parameter to ETFs down 30 percent or more, and the list more than quadruples to over 100 funds, plenty of which are traditional beta products.
So without further ado, here is a look at some of 2018&#39;s most egregious offenders from the world of ETFs.
VanEck Vectors Rare Earth/Strategic Metals ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/remx#NYSE">REMX</a>)
Year-To-Date Loss: 55.47 percent
The list of U.S.-listed ETFs down 50 percent or more this year is populated by 25 funds, 24 of which are leveraged. The exception is the VanEck Vectors Rare Earth/Strategic Metals ETF. REMX has not closed above its 200-day moving average since May and <a href="https://finviz.com/quote.ashx?t=REMX">the charts indicate</a> little in the way of near-term improvement as the rare earths ETF is down almost 26 percent this month and more than 34 percent in the fourth quarter.
REMX is more than eight years old and when the fund debuted in October 2010, it debuted to a solid thesis. That being demand for rare earths would be boosted by the growing smart phone, electric and hybrid car and military equipment markets.
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/12/12901419/5-best-etfs-of-2018">Click here to read about the best ETFs of the year.</a>
iShares U.S. Oil Equipment &amp; Services ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iez#NYSE">IEZ</a>)
YTD Loss: 45.71 percent
Another offender from the world of energy and raw materials. The iShares U.S. Oil Equipment &amp; Services ETF and other oil services are usually highly correlated to oil prices in both directions. That has been the case during oil&#39;s recent swoon as highlighted by IEZ&#39;s fourth-quarter decline of almost 44 percent.
IEZ, which tracks the Dow Jones U.S. Select Oil Equipment &amp; Services Index, needs Schlumberger NV (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slb#NYSE">SLB</a>) and Halliburton (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hal#NYSE">HAL</a>) to get going because that duo combines for almost 28 percent of the fund&#39;s weight.
Global X MSCI Argentina ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/argt#NYSE">ARGT</a>)
YTD Loss: 35.37 percent
Things weren&#39;t supposed to be this way for the Global X MSCI Argentina ETF and Argentine stocks in 2018. Stocks in South America&#39;s second-largest economy rallied last year amid homes the country would receive the coveted frontier-to-emerging markets promotion from index provider MSCI, something that did happen this year.
That wasn&#39;t nearly enough to prop up Argentine stocks, however, amid fears of another currency crisis. Argentina&#39;s efforts to keep its currency, the peso, above water have led to a jaw-dropping benchmark interest rate of 60 percent.
Along the way, ARGT&#39;s year-to-date loss is more than double that of the MSCI Emerging Markets Index. To be fair to ARGT, it&#39;s not the only offender among Argentina ETFs. The iShares MSCI Argentina and Global Exposure ETF (CBOE: AGT) is down 36 percent this year.
First Trust Natural Gas ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fcg#NYSE">FCG</a>)
YTD Loss: 34.64 percent
The First Trust Natural Gas ETF has a rich tradition<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/11/12703781/dare-to-short-natural-gas-this-might-be-the-way-to-do-it"> of being a dog</a>, even when natural gas prices rise and that&#39;s again the case in 2018. Yes, natural gas prices have plunged this month, but it&#39;s deeply concerning for the FCG bull thesis, if that thesis still exists, that the United States Natural Gas Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ung#NYSE">UNG</a>) is up 21 percent this year and FCG is down 34.64 percent.
The ETF has seen 2018 outflows of less than $40 million, but that&#39;s good for approximately a third of the assets under management the fund at the start of the year.
Global X Copper Miners ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/copx#NYSE">COPX</a>)
YTD Loss: 32.10 percent
The list of ETFs down 30 percent or more this year is littered with thematic funds, including the Global X Copper Miners ETF. What makes COPX&#39;s 2018 struggles alarming is that the copper miners fund&#39;s losses have easily overshot those of the largest copper ETN and the lone ETF tracking stocks in Chile, the world&#39;s largest copper producer.
The struggles of COPX and other copper-related ETFs can be tied to fears of a global economic slowdown, which market observers believe will ensnare the Chinese economy. The world&#39;s second-largest economy reported lower-than-expected third-quarter GDP growth, giving traders another reason to punish copper and the corresponding investment vehicles.

Emerging Markets

Emerging Market ETFs

ARGT

COPX

iShares Dow Jones US Oil Equipment & Services Index Fund

Market Vectors Rare Earth/Strategic Metals Etf

REMX

5 Worst ETFs Of 2018

The United States Natural Gas (NYSE: <a class="ticker" href="/stock/ung#NYSE">UNG</a>) languished through a brutal October and the widely followed, futures-based natural gas exchange traded product is now saddled with a one-month loss of nearly 22 percent. That&#39;s enough to put UNG in bear market territory.

	Mild winter late fall temperatures across much of the US partially explain the recent spate of woes encountered by natural gas futures and UNG. Traders are taking notice as volume in the usually heavily traded UNG has recently been above average.

	&ldquo;Trading volume in the product has been well above average for at least the past month in the product, and even though there has been tremendous price pressure in the space as of late, year-to-date UNG has still actually attracted net new assets (over $106 million in) via creation flows,&rdquo; said <a href="http://streetonefinancial.com/">Street One Financial</a> Vice President Paul Weisbruch in a recent note.
<h3>
	Equtiy Side</h3>

	On <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/04/7881647/a-split-decision-for-this-etfs-holdings">the equity side</a>, natural gas stocks haven&#39;t been much to write home about either, though the 5.6 percent shed by the First Trust ISE-Revere Natural Gas ETF (NYSE: <a class="ticker" href="/stock/fcg#NYSE">FCG</a>) over the past month looks good compared to UNG&#39;s recent slide. To FCG&#39;s credit, it&#39;s higher by nearly 2 percent over the past week.

	FCG holds 39 stocks, and in order for those companies to qualify for admission to the ISE-Revere Natural Gas Index (FCG&#39;s underlying benchmark), they must &ldquo;derive a substantial portion of their revenues from the exploration and production of natural gas,&rdquo;<a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FCG"> according to First Trust</a>.
<h3>
	Contango</h3>

	After tumbling through much of last year and in the early stages of 2016, FCG underwent a reverse split to artificially inflate its price. Still, FCG is the safer bet for conservative investors looking to play a natural gas rebounds because, unlike UNG, equities do not expose investors to the potentially dangerous effects of contango.

	&ldquo;UNG has been maligned in the past due its specific fund construction in owning front month Natural Gas futures, which are subject to the negative effects of contango when present in the futures markets, but like its cousin fund, the United States Oil Fund (NYSE: <a class="ticker" href="/stock/uso#NYSE">USO</a>), this has not stopped either fund from becoming and remaining the largest funds in their respective spaces in terms of assets under management,&rdquo; adds Weisbruch.

Specialty ETFs

Natural Gas ETFs Trying To Turn The Fire Back On

In what was a dreadful year for equity-based energy exchange-traded funds, the First Trust ISE Revere Natural Gas (ETF) (NYSE: <a class="ticker" href="/stock/fcg#NYSE">FCG</a>) was a particularly poor performer in 2015, plunging 59.1 percent.
Although it has a long way to go even after last year&#39;s tumble, FCG is higher by more than 23 percent over the past three months, putting the ETF in a new bull market. One of the primary reasons behind FCG&#39;s rally, beyond rebounding oil prices, is short covering. As <a href="http://www.benzinga.com/news/16/02/6483696/shorts-still-love-this-etfs-holdings">recently as late February</a>, some of FCG&#39;s nearly 40 holdings were among the most shorted names in the energy sector.
<h3>The Benefits Of Sector-Wide Shorting</h3>
However, the sector&#39;s rapid rally has punished short sellers, forcing a wave of short covering that has driven some previously downtrodden names higher. Although no FCG holdings are currently among the most shorted energy names, the sector remains heavily shorted, indicating FCG could benefit from sector-wide short covering.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/05/7911567/best-and-worst-sector-etfs-for-may">Best (And Worst) Sector ETFs For May</a></bzrelatedlink>
&ldquo;However, the recent rally has interrupted the relationship between conviction and subsequent price declines. The most in demand names in the US posted the second highest monthly rise in prices seen since 2009, jumping by 5.8 percent on an excess returns basis,&rdquo; said Markit <a href="http:// http://www.markit.com/Commentary/Get/04052016-Equities-Energy-rally">in a recent note</a>. &ldquo;This is only the third occasion where the top percentage of in demand names have posted a monthly excess return above 3 percent, in almost 10 years. On a year to date basis, the most in demand names are now in positive price performance territory.&rdquo;
<h3>The ETF's Rebound</h3>
FCG&#39;s rebound is also accruing against a troubling backdrop of more high-yield energy defaults and bankruptcies within the sector.
&ldquo;As of this week, there have been 59 U.S. oil and gas company bankruptcy filings since the price of crude oil began its steep decline in the second half of 2014, according to Reuters. Fifteen oil and gas companies filed for bankruptcy protection in Q1&rsquo;16,&rdquo; noted <a href="http://www.ftportfolios.com/">First Trust</a>.
Interestingly, the energy sector&#39;s recent bounce has FCG looking expensive. The ETF&#39;s price-to-earnings ratio is nearly 39 with a price-to-book ratio of 1.64, according to issuer data.
&ldquo;Not <a href="http://www.markit.com/Commentary/Get/20042016-Equities-Equity-s-rebound-squeezes-the-shorts">surprisingly</a>, a quarter of names that make up the top 10 percent conviction shorts&rsquo; are energy firms, followed by 19 percent of names in the biotech sector,&rdquo; added Markit.

Long Ideas

Short Covering Helped Fuel This Energy ETF's Rebound

Thanks in large part to rebounding energy commodities, namely oil, the once downtrodden and maligned First Trust ISE Revere Natural Gas (ETF) (NYSE: <a class="ticker" href="/stock/fcg#NYSE">FCG</a>) is up 5.7 percent year-to-date. That is an especially performance showing when noting the United States Natural Gas Fund, LP (NYSE: <a class="ticker" href="/stock/ung#NYSE">UNG</a>) is off nearly 19 percent and when recalling that FCG often lags its futures-based peer.
FCG holds 39 stocks, and in order for those companies to qualify for admission to the ISE-Revere Natural Gas Index (FCG&#39;s underlying benchmark), they must &ldquo;derive a substantial portion of their revenues from the exploration and production of natural gas,&rdquo;<a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FCG"> according to First Trust</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/16/04/7867901/michael-bloomberg-u-s-can-meet-paris-climate-goals-with-or-without-supreme-court">Michael Bloomberg: U.S. Can Meet Paris Climate Goals (With Or Without Supreme Court)</a></bzrelatedlink>
<h3>Honing In On FCG</h3>
Tumbling oil prices drained the financial positions of an array of mid- and small-cap shale producers, prompting scores of credit downgrades and sparking concerns over a <a href="http://www.benzinga.com/news/15/12/6059471/too-much-of-these-sectors-is-hurting-junk-bond-etfs">spate of defaults</a>. Lenders to some of the companies found in FCG are refusing to extend further credit to those firms.
In fact, some banks that lend to shale producers are tightening liquidity requirements, which could be seen as a sign these lenders don&#39;t want to be left with nothing if their borrowers go bankrupt.
However, many of FCG&#39;s member firms have significant oil exposure, such as top 10 holdings Hess Corp. (NYSE: <a class="ticker" href="/stock/hes#NYSE">HES</a>), Anadarko Petroleum Corporation (NYSE: <a class="ticker" href="/stock/apc#NYSE">APC</a>) and Marathon Oil Corporation (NYSE: <a class="ticker" href="/stock/mro#NYSE">MRO</a>). What that means is the ETF can benefit from rising oil prices, as evidenced by its recent rally, but natural gas exposure remains a concern.
<h3>Other Concerns</h3>
&ldquo;Some midstream projects could be at risk if pricing does not improve as producers remain under financial pressure and are hesitant to commit to projects while end-users remain able to secure supply and pipeline capacity at reasonable prices,&rdquo; said <a href="https://www.fitchratings.com/site/fitch-home/pressrelease?id=1003049">Fitch Ratings</a> in a recent note. &ldquo;Ongoing pressure on gas prices could lead to reduced production volumes, particularly in less economic regions. Lower production volumes and continued weakness in prices could result in natural gas projects becoming delayed or outright canceled.&rdquo;
FCG&#39;s natural exposure is telling on another level: The ETF&#39;s lagging more traditional equity-based energy ETFs, which are usually more heavily allocated to oil companies. For example, the Energy Select Sector SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) is topping FCG by 500 basis points this year.
Also pressuring natural gas prices are still elevated production levels.
&ldquo;US production has not slowed; in fact, it has ramped up despite weak natural gas prices and declining rig counts. The latest natural gas production data available from the EIA are from January 2016, with production at 91.1 bcf/day, a 2 percent increase over production in January 2015 and an 8.9 percent increase from January 2014. These increases have occurred despite natural gas price weakness over the same time period. Natural gas averaged $2.23 per million btu in January 2016, down from $2.93 in January 2015 and $4.55 in January 2014,&rdquo; said Fitch.

A Split Decision For This ETF's Holdings

The United States is well on its way to "meet and probably exceed" its commitment to a 26&ndash;28 percent emissions reduction 2025, Michael Bloomberg wrote on <a href="http://www.bloombergview.com/articles/2016-04-21/here-s-why-u-s-will-meet-paris-climate-goals">Bloomberg View</a>.
Bloomberg's comments come as the world leaders are set to gather in New York Friday in order to sign the Paris Agreement on climate change. Contextually, the U.S. Supreme Court's hold on the Obama administration's Clean Power Plan.
"Their concern is understandable, but it's important to recognize: The federal government is not the primary force in the U.S. fight against climate change, and even if the court ultimately strikes down certain parts of the plan, the U.S. will meet and probably exceed its commitment to reduce emissions by 26 to 28 percent by 2025," Bloomberg wrote.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/pressreleases/16/04/p7793988/world-allergy-week-2016-explores-how-climate-changes-affect-pollen-and-">World Allergy Week 2016 Explores How Climate Changes Affect Pollen And Mold Allergies</a></bzrelatedlink>
According to Bloomberg, irrespective of the court ruling, "the federal government will still have a mandate, under the Clean Air Act, to limit carbon pollution from power plants, cars and trucks, and other major sources."
Bloomberg, who is the UN secretary-general's special envoy for cities and climate change, said the target is "modest," as by 2015, the United States had already cut emissions by 11 percent compared to levels from the decade-ago period.
"So our starting line was nearly halfway to our goal. Given this progress, many of us believed that President Obama should have set a more ambitious target. Even now, with the Clean Power Plan on hold, a more ambitious goal is achievable," Bloomberg concluded.

Topics

FSLR

Michael Bloomberg: U.S. Can Meet Paris Climate Goals (With Or Without Supreme Court)

Underscoring the recent bullishness from energy prices, the United States Oil Fund LP (ETF) (NYSE: <a class="ticker" href="/stock/uso#NYSE">USO</a>) is up 22.6 percent over the past month. Energy equities are delivering impressive returns as well, as the Energy Select Sector SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) is higher by 11.7 percent over the same period.
Still, supplies show only modest signs of dwindling, energy earnings estimates for 2016 are contracting, market observers expect oil supply to continue outpacing demand, and it would appear next year could be another rocky one for exploration and production equities.
<h3>Energy's Future</h3>
While considerable debate remains regarding the near- to mid-term future for energy equities and ETFs such as XLE, what is not arguable is that oil&#39;s recent surge has been meaningful for leveraged energy ETFs. Last week, leveraged funds, such as the Direxion Daily Natural Gas Related Bear 3x Shares (NYSE: <a class="ticker" href="/stock/gasx#NYSE">GASX</a>) saw volume explosions.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/03/7671049/hedge-funds-now-strongly-bullish-on-oil">Hedge Funds Now Strongly Bullish On Oil</a></bzrelatedlink>
&ldquo;In fact, oil prices jumped over 9 percent in the first week of March, with U.S. crude currently trading around $36/barrel and Brent oil around $39/barrel. With this, U.S. crude prices are up nearly 33 percent and Brent oil is up 27 percent from their 12-year lows hit in mid-February. Some say there are signs that there are more gains to come,&rdquo; said Direxion <a href="http://www.direxioninvestments.com/xchange/time-to-load-up-on-cheap-energy-stocks">in a recent note</a>.
<h3>GASX's Surge</h3>
Understanding the volume surge in GASX is not complex. The First Trust ISE Revere Natural Gas (ETF) (NYSE: <a class="ticker" href="/stock/fcg#NYSE">FCG</a>), the ETF GASX is designed to deliver triple the daily inverse returns of, is up nearly 26 percent over the past month. That as Direxion plans to reverse split GASX&#39;s bullish counterpart, the Direxion Daily Natural Gas R Bull 2x ETF(NYSE: <a class="ticker" href="/stock/gasl#NYSE">GASL</a>) later this month.
For the five days ending March 10, volume in GASX was more than triple the 20-day average and GASX has been the most volatile of Direxion&#39;s leveraged bearish ETFs over the past month, <a href="http://www.direxioninvestments.com/wp-content/uploads/2014/03/Direxion-Daily-ETF.pdf?utm_campaign=Daily%20Performance%20Email%20031116&amp;utm_medium=email&amp;utm_source=Eloqua&amp;elqTrackId=9d4f4bc2e2f9471bbab622a54f2a1521&amp;elq=ea16efb718eb406296497e22162061ec&amp;elqaid=2183&amp;elqat=1&amp;elqCampaignId=1375">according to issuer data</a>.
&ldquo;OPEC nations dropped oil production by 79,000 barrels/day in February while U.S. production was reduced by 25,000 barrels/day for the week (ending 2/26/2016). The number of oil rigs fell to the lowest level since December 2009, supporting the rally. But is the rally justified? Not according to Goldman Sachs&rsquo; Jeffrey Currie in a Goldman report titled 'The New Oil Order &ndash; Making Sense of an Industry&rsquo;s Transformation,'&rdquo; said Direxion. 
<h3>Direxion Leveraged ETFs With Volume Increases</h3>
For the five days ending March 10, three of the nine Direxion leveraged ETFs experiencing the largest volume increases were energy funds, including GASX, GASL and the Direxion Daily S&amp;P Oil &amp; Gas Exp. &amp; Prod. Bear 3x Shares (NYSE: <a class="ticker" href="/stock/drip#NYSE">DRIP</a>).
DRIP, the triple-leveraged bearish answer to the SPDR S&amp;P Oil &amp; Gas Explore &amp; Prod. (ETF) (NYSE: <a class="ticker" href="/stock/xop#NYSE">XOP</a>), has plunged nearly 55 percent over the past month. DRIP&#39;s volume is more than double the 20-day trailing average over the past week, according to issuer data.
Image Credit: <a href="https://pixabay.com/en/rig-drilling-drilling-rig-oil-1061339/">Public Domain</a>

DRIP

GASL

GASX

Oil Rally Sparks Increased Turnover In Leveraged Energy ETFs

Underscoring the acute weakness faced by natural gas stocks, the First Trust ISE-Revere Natural Gas Index Fund (NYSE: <a class="ticker" href="/stock/fcg#NYSE">FCG</a>) is off 70.7 percent over the past year. That performance is 1,650 basis points worse than the futures-based United States Natural Gas Fund (NYSE: <a class="ticker" href="/stock/ung#NYSE">UNG</a>).

	To its credit, FCG is up a third of a percent over the past month, but the exchange traded fund closed last Friday at $3.36. As has been previously noted in this space, that&#39;s a price point where a reverse split becomes a legitimate possibility, though it must be noted First Trust has not made any announcements to that effect regarding FCG.

	Even with FCG down so much over the past year and sporting a cup of coffee handle, short sales data imply more downside is on the way for the ETF because some bearish traders are quite<a href="http://www.benzinga.com/trading-ideas/long-ideas/16/01/6122350/banks-are-worried-about-some-of-this-etfs-holdings"> fond of some of FCG&#39;s holdings</a>.

	Of the 20 most shorted U.S. stocks, <a href="http://www.markit.com/Commentary/Get/19022016-Equities-Most-shorted-ahead-of-earnings">according to Markit data</a>, three are members of FCG&#39;s 30-stock lineup. Those names are, in order of highest percentage of shares out on loan to short sellers, Chesapeake Energy Corp. (NYSE: <a class="ticker" href="/stock/chk#NYSE">CHK</a>), Southwestern Energy Co. (NYSE: <a class="ticker" href="/stock/swn#NYSE">SWN</a>) and Range Resources Inc. (NYSE: <a class="ticker" href="/stock/rrc#NYSE">RRC</a>). Those stocks combine for 12.5 percent of FCG&#39;s weight.

	What is troublesome for FCG is that short sellers are piling into these stocks after catastrophic declines. Down nearly 90 percent over the past year, Chesapeake trades at a $2 handle, indicating that if shorts see more downside in the name, some believe the stock could go to $0.

	Range Resources plunged nearly nine percent last Friday to bring its 12-month slide to almost 54 percent. Southwestern Energy slumped 16.5 percent last Friday, bringing its one-year plunge to 74 percent. That stocks $7.09 handle is good for two trips to Starbucks...maybe.

	As has been previously noted <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/01/6122350/banks-are-worried-about-some-of-this-etfs-holdings">in this space</a>, some of FCG&#39;s 30 holdings are facing credit and liquidity issues.

	Tumbling oil prices drained the financial positions of an array of mid- and small-cap shale producers, prompting scores of credit downgrades and sparking concerns over a&nbsp;<a href="http://www.benzinga.com/news/15/12/6059471/too-much-of-these-sectors-is-hurting-junk-bond-etfs">spate of defaults</a>. Lenders to some of the companies found in FCG are refusing to extend further credit to those firms.

In fact, some banks that lend to shale producers are tightening liquidity requirements, which could be seen as a sign these lenders don&#39;t want to be left with nothing if their borrowers go bankrupt. Highly leveraged oil and gas producers, including some found in FCG&#39;s lineup, are also attracting interest from short sellers.

Comments

First Trust Natural Gas ETF

Vendite allo scoperto

First Trust Natural Gas ETF (ARCA:FCG), Report sulle vendite allo scoperto

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO