“The (EIA) build was above expectations, and prices initially came off, but I think the market is oversold,” a Massachusetts-based trader said in a Reuters article. “The weather (extended outlook) is turning a little milder, but it’s tough to get too bearish below $3.60 (per mmBtu).”
There are other ways for investors to take advantage of rising natural gas prices, namely the equity-based First Trust ISE-Revere Natural Gas Index Fund (NYSEArca: FCG). FCG has gained 12.8% over the past three months and is up 25.6% year-to-date, whereas UNG declined 6.5% over the past three months and is down 2.1% year-to-date. [A Safer ETF for a Nat Gas Rally]
United States Natural Gas Fund
For more information on gas, visit our natural gas category.
Max Chen contributed to this article.