Thursday, July 16, 2009

UNG Wakes Up!

Natural gas is finally moving substantially higher today as we got the inventory data out:

Natural-gas futures extended gains Thursday after the Energy Information Administration reported U.S. natural gas inventories rose 90 billion cubic feet last week, smaller than some analysts had expected. Some analysts surveyed by energy information provider Platts had projected a buildup as big as 106 billion cubic feet. After the data, August natural gas futures rose 17.9 cents, or 5.5%, to $3.462 per million British thermal units. It was up less than 3% before the data. At 2,886 billion cubic feet, stocks were 589 billion cubic feet higher than last year at this time and 454 billion cubic feet above the five-year average.

Hopefully the trend will continue. We're finally heading into a time of year in which demand ticks higher. How much, remains to be seen.

Lot's of big earnings coming up. Big Tech today with Google and IBM after the bell. I'm doing a couple of earnings related guest posts over at Fund My Mutual Fund, so keep an eye out for those.

Disclosure: Long UNG

1 comment:

Affacturage said...

Now, I am not one who considers economics a strong suit. I like to attempt understanding of it, but I struggle through books written by economists (but hate also to read "dummied down" primers). Meltdown was just my speed