Why Is Natural Gas Plummeting Today?
Natural gas was threatening to test the March low as the Energy Information Administration released its latest inventory data on Thursday, June 25. The July futures contract rolled to August slipped below the $1.70 level for the first time on June 16.
The downside target was the March 2020 low at $1.519, the lowest price for since back in 1995. In early May, a recovery that took August futures to a high of $2.447 per MMBtu ran out of steam on the upside and sent the price of the energy commodity almost 90 cents lower. The lowest price NYMEX natural gas for delivery at the Henry Hub in Erath, Louisiana, ever reached since it began trading in 1990, was $1.02 per MMBtu in early 1992. This year, fell into negative territory, so it is a period where nothing is off the table in the energy sector.
The United States Natural Gas Fund (NYSE:) moves higher and lower with the price of natural gas futures. The UGAZ and DGAZ triple leveraged ETNs are instruments that magnify the price action is the already volatile commodity.
