Outlook on Natural Gas Prices

Recently, natural gas prices have declined due to moderate demand and increasing supply. Production and storage is expected to increase, and drilling has picked up. For traders, a good short will do. However, following the United States Natural Gas Fund (UNG), it looks as if prices have hit a bottom. This is based on technicals, but my long term outlook is that prices will continue to fall so long as production increases. Preparing for summer demand to increase will be a good bargain to go long now, but the industry is quickly ramping up supplies for long term progression.

For the United States, this is great news. Natural gas will continue prove itself as a good alternative to expensive and limited oil. Our nation is in dire need of energy independence, and the sooner we realize the potential of untapped regions, the better the outlook for the industry, our energy security, and the economy. Natural gas exploration and production will create jobs and provide the nation with a cheaper and cleaner alternative to fuel our homes and businesses. The private sector is on board, and it is truly a great thing so long as it is done safely.