patrick.net
An Antidote to Corporate Media
1,195,099 comments by 13,977 users - thenuttyneutron online now
invite responseComments 1 - 6 of 6 Search these comments
I don't think it is suppressed. Fraking has caused production to explode (no pun intended). We're awash in natural gas and it takes a good deal of effort to try to export it. Canada doesn't exactly need it and the demand of Mexico probably isn't much. I wouldn't be surprised if some push to end the sanctions on cuba to create a market for this. We were going to be a net importer and we're now a net surplus.
Personally I wouldn't buy into any futures market.
I think that the companies that will retrieve natural gas may be a buy, IF the fools in Washington stop trying to prevent it.
There are 285 trillion cubic feet of gas under our feet, and you can 1. heat water 2. heat houses 3. run cars, trucks and buses on it.
What's also cool about natural gas? You don't need to REFINE it to make gasoline!!
I don't think it is suppressed. Fraking has caused production to explode (no pun intended). We're awash in natural gas and it takes a good deal of effort to try to export it. Canada doesn't exactly need it and the demand of Mexico probably isn't much. I wouldn't be surprised if some push to end the sanctions on cuba to create a market for this. We were going to be a net importer and we're now a net surplus.
Personally I wouldn't buy into any futures market.
Yes, but can you frak for natural gas and not lose money at $3 per million BTUs?
I am calling a bottom right here, right now on natural gas.
This is the only commodity out there that I know of that is at such an historically low price. Drillers must be losing their shirts at these levels and must be forced to hoist the white flag.
Further, cold weather is finally expected.
Vicente
2012 Jan 7, 7:19am
How does a retail amateur buy a commodity like this? So if UNG is flawed, what is flawed about it? For someone who only has an ETrade account and level 1 Options trading, could I just pick a natural gas company or two and go with that?
anotheraccount
2012 Jan 8, 2:12pm
If you look at natural gas futures prices here http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html, you will see that the contract for December of 2012 is at 3.75. That means that if you buy that contract right now, and the price does not change for a year (assuming you hold it that long), you will lose (1- 3.01/3.75) = 20%
Natural gas is trading at a little over three dollars per 1,000,000 BTUs. The price of Nat gas fell to 2.49 in Sept of 09, and quickly rose back up above four bucks. Besides this data point the price of natural gas is at a multi year low.
Further there is like 130,000 BTUs in a gallon of gasoline so you get alot more heat for the buck from a unit of natural gas.
We are having a warm winter and a supply glut, so the price of natty is suppressed. It seems to me that now is the time to buy natty.
And as a word of warning, dont buy the UNG. You need to buy the futures market. UNG is a flawed vehicle.