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

By  +Follow January 13, 2014 8:46AM
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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
Nat Gas
22 Nov 14 18:11:56
Did we remember to tell you we added another webinar this Tuesday. Includes a great way to trade $UNG. All free > http://t.co/GtFhyr8IJy
Nat Gas
22 Nov 14 12:05:40
If #naturalgas extends rally 4.99 is the next upside target. First resistance is the reaction high crossing at 4.544. $UNG $FCG
Nat Gas
22 Nov 14 12:04:19
#Naturalgas Stochastics-RSI are turning neutral to bearish signaling that sideways to lower prices are possible near term $UNG $FCG
jimenezlaaa
22 Nov 14 11:56:22
RT @sa_article: Natural Gas: A 'Soft Landing' Scenario http://t.co/XEBd9GNzfa $BOIL $DCNG $DGAZ $GAZ $KOLD $NAGS $UGAZ $UNL $UNG
Lin/林莹君
22 Nov 14 11:28:00
Ditto to $TNK long set up $USO related peers $NGS, $UNG $GEOS $NKA $TLP http://t.co/epldlHpYEp
Seeking Alpha - All
22 Nov 14 10:09:54
Natural Gas: A 'Soft Landing' Scenario http://t.co/XEBd9GNzfa $BOIL $DCNG $DGAZ $GAZ $KOLD $NAGS $UGAZ $UNL $UNG
Bidness Etc
22 Nov 14 06:14:52
Natural Gas Ends The Week In The Red - http://t.co/tSHsf6wy1f $UNG
Seeking Alpha - All
22 Nov 14 05:58:18
Day 3: Scaling Into Commodities For The 1% Portfolio http://t.co/9w4yzHsun8 $AAPL #APPLE $IBM $MCD $UNG
jimenezlaaa
21 Nov 14 20:53:43
RT @MarketCurrents: Global energy demand may outpace supply in future, IEA says http://t.co/UvPiewNPCF $UNG $USO $OIL $DGAZ
Will Thejamm
21 Nov 14 20:46:35
This week’s cold snap still caught the markets off guard. Hence a jump in natural gas prices. $UNG http://t.co/zRhg2wFGrZ
Mk
21 Nov 14 18:54:31
Looks like the widow maker is going to be taken to the shed and beatin with a stick! #AP #NoPosition $UGAZ $DGAZ $UNG
dalestrnad
21 Nov 14 17:16:06
At this point $free can fish for sardines & have a better stock price.OVERSOLD!!!Starting a position again. $spy $gdx $ung $aapl $xlf $xop
Ariel
21 Nov 14 14:55:15
@tzbirdie not that, but, $UNG holding in well considering crude is trying to retest up to $85. Should stay >$21.60's http://t.co/LBZjQ08geH
Selling_Options
21 Nov 14 13:06:58
Summary Of Opent Tades : Winnings : $YHOO $UNG $HTZ $HD $CBS $RIG $GME $GLD $QIHU Losing : None I closed today $VLO $CAT win #income
ETF.com
21 Nov 14 13:06:06
RT @HAInvestor: Week In Review: Gold Erases All Of 2014 Losses; Oil Finally Sees Weekly Gain; NatGas Spikes $GLD $USO $UNG http://t.co/gRQ…
Hard Assets Investor
21 Nov 14 13:04:36
Week In Review: Gold Erases All Of 2014 Losses; Oil Finally Sees Weekly Gain; NatGas Spikes $GLD $USO $UNG http://t.co/gRQQFYE3iF
Nick Perdiew
21 Nov 14 12:57:16
@hedgefundclone Ok, $UNG long in at 22.55. Got to learn somehow, right? Let's see if there's room to run in it still.
lookn4wins
21 Nov 14 11:58:03
UNG 22.5898 Stock Charts $UNG United States Natural Gas Fund L.P. (NAR) Any opinions on UNG? Please reply to t http://t.co/9X0Tg5iBY5
Herbert R Tarlic Jr
21 Nov 14 11:36:03
STO 25/26/21/20 Dec iron condor $UNG.
Seaside Trader
21 Nov 14 11:35:56
$NG_F Daily - Wild west widow maker candles on negative divergence - http://t.co/g7JXXSQBtw #natgas $UNG @CMEGroup http://t.co/A2yXxJpKmC
Briefing Trader
21 Nov 14 11:23:57
@TraderInPlay Natural gas extends sell-off with $UNG now -4.0% at Lod; $NG_F now -0.220
erik paul
21 Nov 14 11:22:42
@ep_capital $UNG & $NG_F lower heading to the closing bell; $UNG now -4% with warmer temps seen on the horizon
Jack Briggs
21 Nov 14 11:22:07
@chessNwine ...second wave of bombers detected $UNG .. after they pass moving artillery and assault armor back to front lines....
Lt. Dunbar
21 Nov 14 11:21:23
$boil probably going back to 35/36 area, will load heavy. $ung
SIAnalystWire
21 Nov 14 11:10:27
Natural Gas Edges Lower on Warmer Weather Forecasts $UNG http://t.co/MNCpBweM9w
Eternity101
21 Nov 14 11:07:05
RT @muathe: [VIDEO] Wkend $STUDY Short-Term / Swing Trading Strategies Part 4 $SPY $ES_F $USO $DRN $TZA $EWZ $DUST $UNG $TSLA $V https://t.…
Muathe
21 Nov 14 11:05:20
[VIDEO] Wkend $STUDY Short-Term / Swing Trading Strategies Part 4 $SPY $ES_F $USO $DRN $TZA $EWZ $DUST $UNG $TSLA $V https://t.co/AuQTy3skAo
Hard Assets Investor
21 Nov 14 10:59:39
Commodity ETF Flows: Energy Grabs Lion's Share Of Inflows; NatGas Funds Outperform $UNG $GAZ $XLE $GDXJ http://t.co/b4FjVeIGlo
Jack Briggs
21 Nov 14 09:54:39
@chessNwine . Skies have cleared over the $UNG front allowing enemy airforce to soften it up. #lookingAtDamageReport http://t.co/403HrRr9Zk
Jeff Quiggle
21 Nov 14 09:50:53
On my $MACRO lis everything is up except #munis #natgas & treasury #yield $MUB $UNG $TNX
Gary J. Palys
21 Nov 14 09:17:38
RT @silverjet2: Updated weather forecast models showed temperatures expected to be below normal across most of contiguous U.S. through Nov …
chartguy89
21 Nov 14 09:09:28
AKS Stock Chart $AKS $UNG $PCLN $BBRY http://t.co/3UX1jBvmZ1 http://t.co/Y69cxawYgM
Lt. Dunbar
21 Nov 14 08:56:29
Been adding $boil under 38 and selling over 40 until it can break resistance. $ung.
Jake13
21 Nov 14 08:50:50
$UNG Opinion Today Click here to find out if $UNG is a buy hold or sell. Watching these stocks. $MBLY $F $XLF http://t.co/aQsJvCDDXz
Jake13
21 Nov 14 08:26:36
$BBRY Buy? Click here to find out if $BBRY is a buy hold or sell. Watching these stocks. $UUP $ALK $SDS $UNG h http://t.co/spmrECgYQF
erik paul
21 Nov 14 08:20:14
Nat Gas Lod- $UNG -3.6% $NG_F now -0.210
Investors Hangout
21 Nov 14 07:39:20
leahanne: $UNG US Natural Gas (UNG) 22.86 -0.65 (-2.76%) http://t.co/zR7dmeVjxe
Investors Hangout
21 Nov 14 07:39:20
leahanne: $UNG US Natural Gas (UNG) 22.86 -0.65 (-2.76%) http://t.co/oaircX6RLl
Extreme Stocks
21 Nov 14 07:27:22
leahanne: $UNG US Natural Gas (UNG) 22.86 -0.65 (-2.76%) http://t.co/wAI5CFeY69
Michael J
21 Nov 14 07:21:39
@Tony_BATtista bought the DEC 23 ITM call, sold -1 24 call, and -1 25 call for $0.11 credit in $UNG #tradeideas
leahanne
21 Nov 14 07:20:01
$UNG US Natural Gas (UNG) 22.86 -0.65 (-2.76%) $QCOM $TRIP $BID http://t.co/CgsCwLHc4b
randall millard
21 Nov 14 07:14:21
RT @TraderInPlay: Natural Gas falls sharply on warmer temps forecast- $UNG -3.1% $NG_F
Aaron
21 Nov 14 07:13:35
$ng_f maybe a HS bottom on the 1 minute chart...maybe $ugaz $ung http://t.co/YHIC8f3fj3
danrocks
21 Nov 14 07:02:51
$ARWR alot of talk going around about this one $GDX $MBLY $UNG $BAC $VXX http://t.co/beI5NsUob6
lookn4wins
21 Nov 14 06:56:19
$CENX Candlesticks $CENX Most recent stock chart and technical analysis. $SWRF $IMSC $DROP $UNG $GDX $ALK http http://t.co/jLvwmQFyLf
studentoflife
21 Nov 14 06:37:17
RT @TraderInPlay: Natural Gas falls sharply on warmer temps forecast- $UNG -3.1% $NG_F
Briefing Trader
21 Nov 14 06:36:43
Natural Gas falls sharply on warmer temps forecast- $UNG -3.1% $NG_F
Market Trader Daily
21 Nov 14 06:30:01
Nov 21-2014 Fri Mkt Open $GLD 115.63 $USO 29.05 $UNG 22.79 $JJC 36.41 $UUP 23.43 $BABA 113.19 - #stocks - #ImmigrationAction Draghi China
Tony Cardenas
21 Nov 14 06:18:26
Watchlist: $JD, $SPY, $IWM, $QQQ, $UNG, $AAPL, $AMZN, $CSCO, $TSO, $SPLK, $INTU, $ROST, $FL Let's have a great day! ;-)
Gilbert MAHE
21 Nov 14 06:14:42
RT @HAInvestor: Morning Call: Gold Leaps Above $1,200, Oil Jumps After China Unexpectedly Cuts Interest Rates $GLD $UNG http://t.co/ZLUmviO…
				
				
By  +Follow January 13, 2014 8:46AM
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