UNG’s Woes Visualized

Time To Turn It Around?

After one of the warmest winters on record, United States Natural Gas Fund, LP (NYSEARCA:UNG) hit its historical low early this year. But the fund was able to recover slightly through out the year and things may be looking up for 2013. Though the early forecast for this winter is a bit warmer than normal, the winter as a whole is projected to be much colder than the previous one. This means that demand and usage for NG-powered appliances will likely rise, allowing for the commodity and this fund to do the same.

With United States Natural Gas Fund, LP (NYSEARCA:UNG) taking a tumble in recent weeks, and the forecast finally falling in its favor, the fund may be ready for its first positive calendar year ever. Of course, that still remains to be seen, as it seems like every day the supply and reserves of this fossil fuel expand. New technologies and extraction methods have made it easier than ever to find and use natural gas deposits, and those jumps in supply have a negative impact on prices. Keep a close eye on this ETF in the coming weeks; the stars may finally be aligning for this ETF.

This article was originally written by Jared Cummans, and posted on CommodityHQ.