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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (148232)	10/27/2010 12:53:58 PM
From: Wharf Rat	Read Replies (1) \| Respond to of 543661

I think it's just pretty much supply demand, but NG shouldn't peak until 10 or 15 years after oil, so supply can still increase. Natural Gas Falling On Inventory Report (UNG) By Scott Rubin Benzinga Staff Writer August 26, 2010 10:58 AM Natural gas futures contracts have fallen 1.96% today to $3.795 after a EIA inventory report showed a rise to the higher end of expectations. The United States Natural Gas Fund ETF (NYSE: UNG) has shed 2.13% to $6.42. Today's action continues the steep downward slide in the price of natural gas in 2010. Year-to-date, the UNG has lost over 36%. Natural gas is extremely volatile and the UNG has been falling ever since its inception in 2007, when the ETF traded around $50. The 52-week high in the ETF is $12.22 and the 52-week low is $6.40, or about 2 cents below where it is currently trading. Aggressive traders may want to put on a long UNG trade at these levels to play for a reflex bounce of the new lows. benzinga.com == Why Are Natural Gas Stocks Falling? Trend: Natural gas production exceeds demand in the US at the current time, resulting in falling prices and storage facilities that are approaching capacity. Gail the Actuary at The Oil Drum analyzes the natural gas production data for the US. Excerpts below. trendsimwatching.com