“As a result, the overly bearish position in natural gas is expected to reverse itself, hleping the rally in gas to sustain itself further out, possibly even after the end fo the cold streak that has hit the US Midwest of late,” Nossek added.
Moreover, Nossek argues that structural changes, notably greater industrial demand for cheap natural gas over coal, could give the commodity more fundamental price support. Since 2009, industrial sector’s energy consumption has expanded 6.4% even as demand from end users in other areas remained flat.
United States Natural Gas Fund
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Max Chen contributed to this article.