Monday, 27 February 2012

Question on Natural Gas by a Friend

Question: Would like to seek your opinion on United States Natural Gas Fund (NYSE:UNG).

Answer: For all friends' info, below is the chart on Natural Gas:

No kidding, this stock went from $100 plus to recent low $19.92.  

Basically I think Natural Gas may have hit its bottom. With the Crude oil going higher, natural gas price may kick in higher now.

Having said that, natural gas is a political issue. Currently Us govt policy is not pro-natural gas. Not a lot of policies is towards the usage. Of course Obama got pressure from Crude companies not to have policies to start using natural gas as widespread alternative.

A push in the policy change to use natural gas would definitely ends this fall. And I think with rising oil price, he MIGHT just do it to garner support for the election.

Rgds

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