Natural gas exchange traded funds (ETFs) have had their share of challenges this year. Could cool weather on the East Coast break the funds’ cold snap?
ThirdAge News Staff reports that high natural gas and oil prices have helped some of the largest energy suppliers in the world to increase profits. For example, Conoco-Phillips (NYSE: COP) said their profits doubled on Wednesday, due to higher costs of supplies. Natural gas prices in the United States were 29% higher and sales volumes were up 22% from the same quarter a year ago.
That said, natural gas prices are still off, but cooler weather could put an end to that. Two years ago, natural gas averaged about $17 per thousand cubic feet; now it’s going for about $5 per thousand cubic feet, Robert Wang for Canton Rep reports. [Behind Natural Gas ETF’s Rough Week.]
Natural gas futures are now at their lowest level in more than a year, thanks to an anticipated sharp increase in U.S. inventories, Moming Zhou for Bloomberg reports. Temperatures in the Midwest and Northeast are expected to be below normal next week and 52% of U.S. households use natural gas for heating. The glut may be short-lived. [Investing In the Future With Natural Gas ETFs.]
- United States Natural Gas (NYSEArca: UNG)
- United States 12-Month Natural Gas (NYSEArca: UNL)
- First Trust ISE-Revere Natural Gas (NYSEArca: FCG)
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.