Natural Gas has been so cheap recently and its price remains down about 30% since the start of the year. It has not enjoyed the run-up of other commodities, like Oil and Agriculturals. Check out the comparison
UNG (natural gas ETF) vs. USL vs. DBA
There are still excess capacities in the Natural Gas industry, which also lacks co-ordination of pricing like the OPEC has. But the substitution relationship between Crude Oil and Natural Gas still remains, as they are both energy sources that are easy to tap on. Natural Gas is definitely a good long term play than Oil is.
After all, 80% of US electricity is from Natural Gas. This means that the peak usage may not only occur in Winter for heating, but also in Summer for A/C cooling.
I am moving money from USL to UNG and will keep buying if price dips again in the short term.
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