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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
Walter White
31 Oct 14 08:37:26
@The_Real_Fly Death to the dollar, long live commodities $UNG $UGAZ $USO
Trade Log
31 Oct 14 08:18:49
Sold 2nd half of my $UNG position @ 20.52 for a total gain of +5.69% gain http://t.co/HLntPywsKx
Stock Relay
31 Oct 14 08:17:05
$HALO Investor Opinions Click Here: http://t.co/ltxDSJDG9H Also See: $WFC $IYT $XOM $UNG ~
Issaquah Capital
31 Oct 14 07:53:40
$UNG nat gas quietly getting back to a 4 handle.. $SWN $COG
31 Oct 14 07:46:32
UNG Stock Chart $UNG $GILD $XLB $PD.TO http://t.co/3vUo3KjSy9 http://t.co/PPLtGK8TAe
31 Oct 14 07:11:42
$APT Alpha Pro Tech (APT) 3.68 -0.07 (-1.87%) $TBT $SLV $UNG http://t.co/uTNptgyxYz
Stock Relay
31 Oct 14 07:09:22
$GOOG News Click Here: http://t.co/JfkXaAqnJT Also See: $CLF $SPLK $AAPL $UNG ~
31 Oct 14 06:53:05
$XLY Consumer Discret Select Sector SPDR (XLY) 68.29 +0.85 (+1.26%) $GOOG $UNG $XOM http://t.co/QP3wlB9uci
31 Oct 14 06:15:46
$SPY gapping up and $UNG green premarket with inside bar on 30 min chart UGAZ http://t.co/gS2rBJCSLr
31 Oct 14 06:11:36
$UGAZ Blue arrow alert inside bar 30 min chart $UNG http://t.co/dWeETHWPvJ
31 Oct 14 06:09:21
$UNG WOW sweet move!
Hard Assets Investor
31 Oct 14 06:00:22
NatGas Prices In Line With Recent Years As Winter Risks Weighed $UNG http://t.co/A7WkI8xvlV
Jack Damn
31 Oct 14 05:58:23
Large gap up for equities this morning. Not fond of jumping into gaps after a strong run. Will focus on getting a good fill in $UNG instead.
Mitchell Warren
31 Oct 14 05:28:20
Pre-Market Activity: $SPY +1.1% $VXX -3.1% $TLT -0.4% $UUP +0.5% $USO -1% $UNG +2.2% $GLD -2.6% $SLV -3.4%
Stock Relay
31 Oct 14 05:04:58
$FREE Ideas Click Here: http://t.co/RHMjnbkLrr Also See: $PLUG $CSX $UNG $XIV ~
31 Oct 14 04:22:01
RT @LinYingjun: So do speak, if one have 50K-100K account one only needs to trades a few time a year. longer term $BABA, $FB $AAPL or $UNG …
31 Oct 14 04:21:23
RT @HAInvestor: NatGas Prices In Line With Recent Years As Winter Risks Weighed $UNG http://t.co/A7WkI8xvlV
Jack Damn
31 Oct 14 04:17:44
Good morning. Starting the day holding S/L $AET (Stop 78.51 vs. Target 88.92). Large Caps on watch: $BA. ETFs: $GDX $UNG.
Stock Relay
31 Oct 14 03:09:34
$FB Bid Click Here: http://t.co/9JZnr5kdAr Also See: $JNUG $DBA $UNG $XOM ~
Stock Relay
31 Oct 14 03:02:54
$F Ask Size Click Here: http://t.co/X2yUWz4rr1 Also See: $CTIX $UNG $GOOGL $YDLE ~
31 Oct 14 02:23:34
$DRYS Financials Click Here: http://t.co/VtiUuHdvQO Also See: $ABBV $UCO $TWTR $UNG ~
Stock Relay
31 Oct 14 02:15:56
$ELRA Exchange Click Here: http://t.co/ihtTWW3icl Also See: $UNG $ITB $AKRX $HD ~
31 Oct 14 01:56:47
$DECK Summary Click Here: http://t.co/cV7oE5U31s Also See: $SBUX $UNG $UNG $SBUX ~
31 Oct 14 01:26:05
$DDD Market Cap Click Here: http://t.co/t9hMYeoYV9 Also See: $UNG $BTU $MS $BAC ~
Stock Relay
31 Oct 14 01:09:50
$DIA Ask Click Here: http://t.co/ieacjmJio5 Also See: $GE $UNG $NFLX $AXCG ~
31 Oct 14 00:59:28
$DBC Message Board Posts Click Here: http://t.co/JEkcir4RqO Also See: $ARCP $LNKD $UNG $XLF ~
Mike Mustafoglu
31 Oct 14 00:46:56
Oil Rout Seen Diluting Price Appeal of U.S. LNG Exports $USO $UNG $GAZ $LNG http://t.co/dge0o6JOh7
30 Oct 14 23:55:56
$CREE % Change Click Here: http://t.co/ZjAyRVZEWh Also See: $FLY.V $FNV $APT $UNG ~
30 Oct 14 23:47:40
$CREE Ideas Click Here: http://t.co/pxxxT3aFJ7 Also See: $RIG $CELG $UNG $XLE ~
30 Oct 14 23:38:22
Partner Jet $PJT.V is up 183% this week after Q3 release with more gains coming. Find out why: http://t.co/MEpEjkCm4H $UNG $SNDK $ACT
30 Oct 14 23:13:18
$CENX Message Board Posts Click Here: http://t.co/b1OK3QrnZS Also See: $LNKD $AXCG $DBA $UNG ~
30 Oct 14 22:56:19
$CELG Change Click Here: http://t.co/xFyq487zYc Also See: $TSLA $FSLR $UNG $TLT ~
30 Oct 14 21:57:16
$BITA Ideas Click Here: http://t.co/n0nELT40vw Also See: $UNG $PBR $IYT $DDD ~
30 Oct 14 21:50:53
$BMRN Quotes Click Here: http://t.co/stxVausdHT Also See: $RGLD $WFC $IBM $UNG ~
30 Oct 14 21:16:07
$UGAZ Blue arrow Alert! Inside bar on daily chart. $UNG too. http://t.co/D65OfU5XCg http://t.co/xOkbw2vB1l
Rosner Stocks
30 Oct 14 20:44:04
$BAC Market Cap Click Here: http://t.co/oQaMnZh9Ne Also See: $CSCO $BDCL $UNG $LNKD ~
Stock Relay
30 Oct 14 20:25:55
$BDCL Ideas Click Here: http://t.co/DLaknkRIvj Also See: $AKS $SMN $UNG $HYG ~
30 Oct 14 19:33:32
$ANV Stock Forum Click Here: http://t.co/zVDXCXZdxG Also See: $UNG $MU $LNKD $ING ~
30 Oct 14 19:28:55
$AMRN Message Board Posts Click Here: http://t.co/dgHfiRp55L Also See: $VMW $UNG $DBC $EFA ~
30 Oct 14 19:03:11
$AMED Ex-Div Date Click Here: http://t.co/YgdT65QeBR Also See: $PLUG $UCO $MOBL $UNG ~
Stock Relay
30 Oct 14 18:08:52
$AMED Investor Opinions Click Here: http://t.co/lB7EU5OMgS Also See: $MCD $ELRA $UNG $UNG ~
30 Oct 14 17:24:59
$ung http://t.co/645cGi72pA
Jeff White
30 Oct 14 17:15:20
RT @allstarcharts: looking more and more like a failed breakdown in natural gas with a bullish momentum divergence. Interesting development…
Stock Relay
30 Oct 14 13:58:05
$KOL Ask Click Here: http://t.co/RDTKPm8DYX Also See: $GILD $ELRA $UNG $IYT ~
Stock Relay
30 Oct 14 13:55:09
$LNG Bid Click Here: http://t.co/BwQCz0K9Ao Also See: $UNG $LNKD $SOL $IWM ~
Forex  News Insider.
30 Oct 14 13:35:10
Precious metals lead commodity slide http://t.co/dbfxVbpISY $SLV $GLD $USO $UNG
Hedge AccordingLy
30 Oct 14 13:27:20
$COP $USO $UNG $XLE $OIH “@BloombergNews: ConocoPhillips becomes the first to cut spending on lower oil: http://t.co/I97O1xQ3R1”
john pagnotta
30 Oct 14 13:20:38
RT @allstarcharts: looking more and more like a failed breakdown in natural gas with a bullish momentum divergence. Interesting development…
30 Oct 14 13:19:44
$JNUG News Click Here: http://t.co/NDVJa439Jx Also See: $SPLK $HGD.TO $UNG $TIP ~
30 Oct 14 13:11:17
RT @allstarcharts: looking more and more like a failed breakdown in natural gas with a bullish momentum divergence. Interesting development…
By  +Follow January 13, 2014 8:46AM



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