UNL - Back At Pre-Pandemic Levels Natural Gas Finally Looks Like A Buy
2024-01-23 04:18:36 ET
Summary
- Natural gas prices have experienced a significant downturn but may be entering oversold territory.
- Recent cold weather in the United States has led to increased natural gas demand and depleted inventories.
- The ongoing war in Eastern Europe and increased US natural gas exports to Europe have impacted global energy markets.
By Andrew Prochnow
During the past 16 months, the natural gas market (/NG) has experienced a significant downturn, yet indications suggest that prices have now entered "oversold" territory. When commodity prices reach extremes, they often undergo overcorrection as the market seeks equilibrium.
Following a substantial correction of over 70%, natural gas prices seem poised to stabilize or potentially initiate a reversal. Since August 2022, prices have plummeted from around $9.25/MMBtu to $2.50/MMBtu. During the last 52 weeks, the United States Natural Gas Fund ( UNG ) has seen a decline of approximately 53%....
Back At Pre-Pandemic Levels, Natural Gas Finally Looks Like A Buy