Outlook For Natural Gas ETF (UNG) Turns Bearish As NG Supply Surges

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Outlook For Natural Gas ETF (UNG) Turns Bearish As NG Supply Surges

By David Bettencourt on September 30, 2009 | More Posts By David Bettencourt | Author's Website

Natural Gas supplies are at capacity and producers will be forced to dump excess supplies onto the market which will cause demand to plummet.

“Should some of this stored gas be dumped into the market prematurely, it could slam the front-month contract. Likewise, anything related to the front-month, such as the United States Natural Gas Fund ETF (UNG), could be under pressure,” Vincent Fernando reports from Business Insider.

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The investment (UNG) seeks to replicate the performance, net of expenses, of natural gas. The trust will invest in futures contracts on natural gas traded on the NYMEX that is the near month contract to expire. It is nondiversified.

Chart for United States Natural Gas (UNG)

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