Natural gas prices were trading around $4.0 per million British thermal units late Monday. Gas prices rose as utilities made the switch to natural gas from coal due to cheaper prices. However, analysts are cautioning that with natural gas prices at $4, utilities may switch back to coal if gas prices rise any further.
The United States Natural Gas Fund (NYSEArca: UNG) is up 12.8% year-to-date and gained 26.9% over the past year. The ETF is currently testing its long-term, 200-day simple moving average.
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Max Chen contributed to this article.