Despite anticipation of increased summer demand, natural gas storage levels are 16.6% above their five-year average, the rig count is soaring and and drilling activity is increased. This means that the stepped-up supply may not be falling off anytime soon, further contributing to depressed prices. [When Will Natural Gas ETFs Rebound?]
Trying to predict when, how and how much oil and natural gas prices recover is going to be an exercise in futility when the economy is on such uncertain ground. What’s more, major oil and natural gas ETFs are sitting well below their long-term trend lines (the 200-day moving average), so this may be a situation of “wait and see” for the time being. [How to Follow the Trends.]
For more information on commodities, visit our commodity category.
- United States 12-Month Oil (NYSEArca: USL)
- United States Oil (NYSEArca: USO)
- PowerShares DB Oil (NYSEArca: DBO)
- First Trust ISE-Revere Natural Gas (NYSEArca: FCG)
- United States Natural Gas (NYSEArca: UNG)
- United States 12-Month Natural Gas (NYSEArca: UNL)
For full disclosure, some of Tom Lydon’s clients own shares of UNG.
Max Chen contributed to this article.