• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 6 days Energy Armageddon
  • 4 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 2 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 2 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 14 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days The Federal Reserve and Money...Aspects which are not widely known
  • 3 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 11 days Wind droughts
  • 3 days Goldman Betting on Cryptocurrencies
  • 11 days Putin and Xi Bet on the Global South
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Is There Still Opportunity in the Natural Gas Space?

We’ve got to talk about natural gas, because it’s recently been by far the most volatile commodity and, truth be told, a fantastic long-term investment for the past year.  Is there still opportunity in the space? What should we make of this mercurial commodity now?

Look at a long-term chart of natural gas, and you’d have made quite a score over the last year, just by being long.  Since a spot price low of under $2/mcf in the spring of 2012, we saw futures top $5.50/mcf briefly yesterday before February futures expired.  Even my most hated ETF the United States natural gas fund (UNG) rallied from $18 to over $26 since early December.  

Much of this recent rally has obviously been due to extreme cold reaching far into the southland of the US.  The market itself is expressing the short-term nature of this phenomenon as well: While March is trading today at $5.10/mcf, futures for May are trading at $4.35/mcf and are under $4 as soon as the spring of 2015.  This deep level of backwardation in the curve of prices is a classic indication of short-term conditions impacting front month futures while not greatly impacting longer-term price expectations.  

But here’s the thing, and a most important thing it is:  futures curves of prices of most commodities are notoriously bad predictors of future price action.  Have a look at the recent activity of natural gas itself if you want proof.  After…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News