May Natural Gas futures currently sit a shade above $3.50 – their lowest point since 2002! Check out this chart…can you spot the trend?
Jeff Clark writes that $3.50 is widely regarded as the “shut in” price for natural gas – the price where drillers are better off closing the well than continuing to operate it.
When the price of a commodity drops below the cost of production, that is music to our ears. After all, the best cure for low prices is low prices. Keep an eye on the natty, because something has to give, sooner or later.
Looking for an easy way to invest in natural gas? Check out UNG, a fund that tracks the price of the natty – it’s a simple way to speculate on natural gas prices from the comfort of your stock trading account.