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Home >> Stock Forums >> Natural Gas trade opinions...

Natural Gas trade opinions...

rmani said: "Natural Gas always seems to bottom out in the summertime and peak in the wintertime. I'm wondering if anyone thinks buying the UNG (Natural Gas ETF) now would be a good play and look to sell it sometime in early next year when the prices are typically at their highest due to the high demand for heating in the northern states. opinions?"

rmani said: "anyone, opinions?"

ggrider said: "You might consider spending some time at the Energy Information Agency site. They have a lot of useful information on the energy markets including natural gas. You are correct that the price of natural gas tends to start to rise in the late summer and peaks in late winter. One positive so far this year, is the injections of natural gas into storage have been below their five year average, which could can lead some traders to worry about insifficient supply if we get a cold winter. I doubt we will experience insufficient supply, but it is the perception that counts. Right now the price of natural gas is falling with the drop in oil. Helping the price to fall is slightly less demand for gas to generate electricity as the summer has not been as hot as some expected. A fair amount of the electricity in the US is generated from natural gas. You might also consider some of the exploration companies that drill for and produce natural gas. Chesapeake (CHK), Devon (DVN and Petrohawk (HK) come to mind. Their prices have fallen with the price of gas. Could be good buy opportunities."

rmani said: "ggrider can you or someone else play devils advocate for me and tell me why NG might go down from its current levels?"

ratAphooey said: "Natural gas seems like a good bet to me. Certain cars can run on it plus people need to it to heat homes."

rmani said: "[QUOTE=ratAphooey;71699]Natural gas seems like a good bet to me. Certain cars can run on it plus people need to it to heat homes.[/QUOTE] When do you think is a good time to buy? It's priced right around $40 now but it's been in a steep decline the past 2 months."