After a long decline, natural gas has rebounded and is now trading at levels not seen since March. At the same time, oil continues to decline in concert with the Euro, despite a moratorium on new offshore drilling.
The Wall Street Journal is reporting that the Energy Department has discovered that it has been overstating U.S. natural gas production data. Turns out that the Energy Information Administration was only collecting output information from large producers and then estimating production from the rest of the industry.
Natural gas futures continued to decline last week after a government report showed a smaller than expected withdrawal from inventories. The United States Natural Gas Fund (UNG), an exchange traded security designed to reflect the changes in percentage terms of the price of natural gas, is down nearly 30% in 2010 and down nearly 60% from year ago levels.
After enjoying a spectacular growth surge earlier this year, commodity ETF managers now find themselves under attack from the U.S. Commodity Futures Trading Commission (CFTC).
In a move that casts a shadow on the future of US securities markets, the Commodities Futures Trading Commission (CFTC) withdrew permission for Deutsche Bank to exceed established limits on positions in Soybean, Corn and Wheat contracts.
The manager of the giant US Natural Gas Fund (UNG) is responding to an uncertain regulatory enviornment by exploring new ways to gain exposure to the commodity according to an interview with the Wall Street Journal.
Natural Gas ETFs are a good way to invest in the world’s ever growing demand for energy. Several flavors of natural gas ETFs are on the market to match almost every variation of risk appetite.