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Natural gas gains on colder weather forecasts

|About: The United States Natural G... (UNG)|By:, SA News Editor

Natural gas futures (UNG +4.3%) close +4.8% to $2.44/MMBtu after some climate models predicted a sweep of cold weather across the Midwest and eastern two-thirds of the U.S. within the next two weeks.

Some analysts are not convinced today's gain will last; Ritterbusch and Associates says it is "not yet seeing any below-normal [temperature] expectations and in the absence of such forecasts, additional price gains will likely prove limited."

Today's boost comes after the natural gas price plunged nearly 16% last week for its largest weekly decline in more than a decade, hurt by ample supply levels and milder than expected temperatures.

While most energy equities are down, natural gas-focused names trade higher today: CHK +5.1%, AR +4%, RRC +1.5%, EQT +1%, GPOR +1%, SWN +0.8%, COG -1.6%.

ETFs: UNG, UGAZ, DGAZ, BOIL, GASL, FCG, KOLD, GASX, UNL, GAZB, GAZ

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