Revisit To The US Natural Gas

September 14th, 2009 by Belisarius

Excess gas coming to the  spot markets due to light demand and curbs imposed by pipeline industry continue to cause wild swings in the spot markets. If we look at the futures markets those swings are not so strong probably due to size of futures markets in comparison to physical markets.

Chart 1. US Natural Gas Futures

US Natural gas FMF 14092009

UNG managers have decided to issue new shares. Indexuniverse.com story: UNG’s Managers Decide To Re-Open Natural Gas Fund. Important, they are already now claiming that it will be hard for them to match unit creation with investing in the underlying. I still don’t find the circumstances favorable for taking a position.

Chart 2. UNG Market Price vs. NAV

Spread UNG Market Price vs. NAV 14092009

The futures curve has changed slightly only in front month contracts.

Chart 3. US Natural Gas Futures Curve

US Natural Gas Futures Curve 14092009

,

This entry was posted on Monday, September 14th, 2009 at 8:32 am and is filed under Commodities. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “Revisit To The US Natural Gas”

  1. UNG problem at UUP | Tainted Alpha Says:
    November 6th, 2009 at 6:24 am

    […] fund manager used up SEC registered shares. Similar to United States Natural Gas earlier this year, covered on Tainted Alpha. DB Commodity Services LLC filled  to the U.S. SEC to register 100,000,000 additional shares in […]

 
Get Adobe Flash player