“Natural gas soared the most in nine years, climbing past the $4 mark to the highest level since February 2014. Chilly weather has taken hold across much of the central and eastern U.S., with Texas seeing its earliest snowfall ever this week. Another cold blast is set to arrive this weekend, with relief likely coming by Thanksgiving,” according to Bloomberg.
Related: Natural Gas ETFs Bring the Heat
The trade spat between the U.S. and China is also a factor to consider. In response to the latest round of U.S. tariffs, China proposed a 25% levy on liquefied natural gas, or LNG. Alternatively, China would get its gas fix from Australia, Qatar, Russia or its own domestic sources as the emerging Asian economy develops its own sources. However, there is speculation the trade tensions between the U.S. and China could soon ease.
UNG, the most heavily traded natural gas ETF, is up more than 53% year-to-date, making it one of the best-performing commodities ETFs this year.
For more information on the natural gas market, visit our natural gas category.
