Natural gas prices have been quite volatile in 2012, trading
over a wide range. The important commodity started the year at
about $4/MM Btus, plunged down to $3, before trending back
towards the four dollar mark once again in the fourth
However, just in the past few weeks, natural gas prices have
slumped, falling about 40 cents or 10% just from their Q4 high,
leaving them at their current level around the $3.7 level.
Some traders in the space have clearly been spooked by the
unseasonably warm weather across much of the Northeast and
especially here in the Midwest. Yet prices have come back in
recent days as the latest forecast suggested a fresh period of
cold weather, a prediction that helped to boost natural gas about
4.6% in Wednesday
Clearly natural gas is at a crossroads, and the important but
often volatile product needs some direction as we head into 2013.
Which direction do you think it will be?
Will warm temperatures and fracking keep natural gas under
pressure again this winter, or will a cold patch and hopes of
natural gas exports and more industrial activity boost prices
Personally, I think that natural gas is heading lower as there
is just too much supply in the market, and hopes for exports in
the short-term seem farfetched at best, but what about you?
Let us know what you think in the comments below!
VEL-3X INV NG (DGAZ): ETF Research Reports
VEL-3X LNG NG (UGAZ): ETF Research Reports
US-NATRL GAS FD (UNG): ETF Research Reports
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