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Polar Vortex Drives Up Gas Prices, Iranian Deal Drives Down Crude

By  +Follow January 13, 2014 8:46AM
Tickers Mentioned:

ETFs tracking natural gas prices spiked Monday, following natural gas futures north as speculation that Thursday’s report on stockpiles from the Energy Department will show steep declines. Natural gas futures for Feb. 14 delivery were up over 4.75 percent Monday.

Gains for natural gas futures pulled up the major ETFs tracking natural gas prices, as well as companies extracting it. The United States Natural Gas Fund (UNG) jumped by more than 4.75 percent, the iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) climbed over 6.25 percent, and the United States 12-Month Natural Gas Fund (UNL) is up almost 3.5 percent.

Polar Vortex, Cold Weather Could be Spurring Demand

The winds that swept down from the north bringing sub-zero temperatures to most of the United States this last week also brought with them the chance that natural gas usage would increase dramatically. And, with MDA Weather Services predicting persistently lower-than-average temperatures, speculation appears to be raging among traders that the US Energy Department will report dramatically lower reserves on Thursday, driving up prices for natural gas.

“Traders are focusing on the fact that we’re probably going to see a record storage withdrawal,” said FCStong Latin America’s senior vice president of energy trading Tom Saal. “The market’s not ready to give up on winter yet.”

Thursday’s report is widely expected to show reserves dropping by more than 300 billion cubic feet in the week ending Jan. 10, a figure that would exceed the previous record decline of 285 billion cubic feet from Dec. 13.

Crude Oil Prices Continue to Plunge

News of this weekend’s deal with Iran that could return some of that country’s vast oil reserves to the open market pushed crude prices even lower on Monday, moving against natural gas’ big gains. West Texas Intermediate (WTI) crude was down almost 1 percent, below $92 a barrel, while Brent Crude was off over 0.25 percent to just under $107 a barrel.

"Up to 1 million barrels of Iranian oil per day could become available," said Commerzbank analysts. "Unless oil production was cut elsewhere, this would give rise to a considerable oversupply on the oil market, which would weigh on prices."

WTI reached a six-month low, continuing a decline of over 8 percent since it peaked at just over $100 a barrel in late December and pulling down ETFs connected to crude prices with it. The United States Oil Fund ($USO) was off almost 1.25 percent, the PowerShares DB Oil Fund ($DBO) fell just over 1 percent, and the United States 12-Month Oil Fund (USL) fell almost 0.75 percent.


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for UNG
Norman Mitis
21 Oct 14 12:46:15
$UNG (Natural Gas ETF) Daily Chart – Trading Near 2014 Lows http://t.co/gZa3bNlIBd
Garry Frey
21 Oct 14 11:54:26
@allstarcharts $UNG you may want to look at January/February I burn 300K DTH and I know the pain of not hedging winter gas in the summer
Dumb Money
21 Oct 14 11:32:10
Huge reversal in natural gas, $UNG, $DGAZ, $UGAZ. Bottom in before winter?
21 Oct 14 10:57:07
$UNG http://t.co/5TSoltG9VD
J.C. Parets
21 Oct 14 08:51:15
out of curiosity, why do so many people think that Natural Gas does well in the winter? When it's actually the complete opposite $NG_F $UNG
J.C. Parets
21 Oct 14 08:44:59
@MelissaLeeCNBC and Mel remember that seasonally the winter is the worst time of the year historically for Natural Gas $UNG $NG_F
J.C. Parets
21 Oct 14 08:43:04
@MelissaLeeCNBC when markets ignore seasonal trends, there are larger forces at work. The market is speaking..... $NG_F $UNG
Mike Zaccardi, CMT
21 Oct 14 08:36:56
My new @seeitmarket post: "Where Are Natural Gas Prices Headed? Is Another Brutal Winter In Store?" http://t.co/3avF6zPvd6 $NG_F $UNG
See It Market
21 Oct 14 08:35:17
New Post: "Where Are Natural Gas Prices Headed? Is Another Brutal Winter In Store?" http://t.co/qNevwNaT4A by @MikeZaccardi $NG_F $UNG
Dividend Master
21 Oct 14 08:22:43
$USO & $UNG both red now .... lotsa energy/driller names up 2-3-5% anyway . Going to be like waking up with fat secretary after Xmas party
21 Oct 14 07:37:22
$UNG $19.60 oh myyy
Investors Hangout
21 Oct 14 07:35:39
danrocks: $TSLA keeping this on watch $IBIO $UNG $SH $AAL http://t.co/f3s62iEHQ2
21 Oct 14 07:28:29
$TSLA keeping this on watch $IBIO $UNG $SH $AAL $ACWI http://t.co/TpiYuA4yeO
21 Oct 14 03:20:39
☯Gain Followers ☯RT This ☯MUST FOLLOW ME I FOLLOW BACK ☯Follow everyone who rts ☯Gain #myfirsttweet, #gameinsight $ung
Stock Forums
21 Oct 14 02:05:48
$ELTP Dividend Click Here: http://t.co/CHc97EqfX7 Also See: $UNG $XOM $GE $TMV ~
Chasing Stars
21 Oct 14 00:44:21
$DFSVX Stock Forum Click Here: http://t.co/P1f3Qa1VbM Also See: $UNG $EWI $BBBY $GNCP ~
Investors Hangout
21 Oct 14 00:27:55
$DBA Dividend Click Here: http://t.co/3xpjONlsbY Also See: $USO $NM $UNG $GLOG ~
20 Oct 14 23:02:06
RT @SovereignInvest: Ready for another cold winter? The grind on our natural gas storage should worry you. http://t.co/RflOuaJD7c #market…
20 Oct 14 22:49:12
RT @SeekingAlpha: Swing Trading Of Natural Gas Before Winter: Analysis Of Current Working Gas Storage Data http://t.co/eUHhPBpB6s $UNG
20 Oct 14 22:48:53
RT @allstarcharts: This consolidation in Natural Gas has taken too long for it to be a bear flag imo. $NG_F $UNG - should see a pop soon to…
20 Oct 14 22:41:01
RT @msttrader: $UNG breakdown getting so little attention. Just the way shorts like it.
20 Oct 14 21:01:17
@SoberLook Ugly. $NG_F $UNG
20 Oct 14 19:39:54
RT @Ro_Patel: IEA: 98% of crude oil & condensates from US have a breakeven price of below $80 & 82% have breakeven price of $60 or lower - …
20 Oct 14 19:38:56
RT @DividendMaster: warm weather this week & focus on oil plunge = perfect setup for a $UNG plunge thru $20 while nobody watching
20 Oct 14 19:38:35
RT @BenCBanks: $UNG : Looks vulnerable here to break lower from consolidation. Commodities are not my forte, so will likely steer clear.
20 Oct 14 19:37:32
RT @DividendMaster: $UNG diving as traders realize little storage left and warm weather = hot potato
20 Oct 14 19:37:06
RT @msttrader: $UNG headed for sub-17. http://t.co/cbPmrSK83W
20 Oct 14 19:34:41
RT @bdlefan: When the day comes @DallasTexxxas says to go long $UNG $UGAZ or natgas options - that is good advice - he is short natgas fo…
20 Oct 14 19:34:08
RT @DallasTexxxas: WOW. who would have thought?! // Approaching winter of little concern to natural gas market http://t.co/p5ReCyeSR6 $UNG …
Ben Silverberg
20 Oct 14 19:32:52
Leading market sectors lower Monday included: $DIA $RSX $USO $UNG $DBA
20 Oct 14 16:27:29
Solar got some love.Starting a position in $RGSE -Sold last of my overall stock big positions into todays rally. $spy $gdx $ung $free $hemp
Colin Macleod
20 Oct 14 14:50:43
6 Beaten up charts putting in minor gap down today Tuesday should be fun! http://t.co/5ZzdkGxfGy $IBM $LVS $PBR $CMRX $UNG $NOK
Daily Contracts
20 Oct 14 13:51:01
Real-Time feed of company contracts, original agreements and executive updates from United States Natural Gas Fd $UNG http://t.co/mMqsyEoteu
Seeking Alpha
20 Oct 14 12:21:10
Will The Recent Fall Of UNG Continue? http://t.co/kOZmQw2cfL $UNG
Chasing Stars
20 Oct 14 12:18:29
$JPM Company Info Click Here: http://t.co/5TptSf0u1k Also See: $TMF $YPF $UNG $XOM ~
Market Int Center
20 Oct 14 12:06:13
US Natural Gas $UNG Showing Resistance Near $20.47 ( http://t.co/65XueMUNEq )
John Ryan
20 Oct 14 12:02:17
Cold in New England today, the furnace is running, and the Woolly Worm says tough winter on deck! http://t.co/6hfYPZz6n8 $UGAZ $DGAZ $UNG
Joe Fleikenstein
20 Oct 14 11:48:12
$GOOG bullish move. $LNG interesting since $UNG dropped $LNG went north
20 Oct 14 11:28:31
WOW. who would have thought?! // Approaching winter of little concern to natural gas market http://t.co/p5ReCyeSR6 $UNG $DGAZ $UGAZ $BOIL
Victor Reklaitis
20 Oct 14 11:19:48
RT @EricBalchunas: This just in --> John Hyland, Chief Investment Officer of United States Commodity Funds, Resigning ... http://t.co/CS9Fd…
Investors Hangout
20 Oct 14 11:03:27
Jake13: $UNG Buy or Sell? Click here to find out if $UNG http://t.co/RSqxkpmn7P
Investors Hangout
20 Oct 14 11:03:22
Jake13: $UNG Buy or Sell? Click here to find out if $UNG http://t.co/8beP9rMBO9
20 Oct 14 10:43:02
$UNG Buy or Sell? Click here to find out if $UNG is a buy hold or sell. Watching these stocks. $DOW $USO $IYR http://t.co/3kcrIoeOaj
20 Oct 14 10:37:53
Commented on StockTwits: We have shorted $UNG since last week... $DGAZ $HND.TO $UGAZ $HNU.TO http://t.co/vadcsWfrDA
Daily Contracts
20 Oct 14 10:23:01
Real-Time feed of company contracts, original agreements and executive updates from United States Natural Gas Fd $UNG http://t.co/mMqsyEoteu
Investors Hangout
20 Oct 14 10:10:21
DennyT: ACT OTC Short Report $ACT $USO $GE $LGND $UNG http://t.co/1ZX9SonfbV
Investors Hangout
20 Oct 14 10:10:21
DennyT: ACT OTC Short Report $ACT $USO $GE $LGND $UNG http://t.co/05jHxTAbAP
20 Oct 14 09:58:39
ACT OTC Short Report $ACT $USO $GE $LGND $UNG Barchart Opinion,TA,Stock,Company News,Picking Up MOMO Stock Quo http://t.co/98REF55HQi
James K Graffius
20 Oct 14 09:54:40
Approaching winter of little concern to natural gas market http://t.co/qoGlf679zp $UNG $DGAZ $UGAZ $BOIL
erik paul
20 Oct 14 09:43:15
Nat Gas sell-off extends: $UNG -2.5%---> http://t.co/nMCEGhVwpW $NG_F
By  +Follow January 13, 2014 8:46AM



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