Forget Oil! Nat-Gas Hits 7-Month Highs (UNG, CHK, CLNE)

By Jon C. Ogg

Published July 30, 2012, 2:47pm ET · 1 min read

The price of Natural Gas keeps ticking higher and higher. We are now on the seventh consecutive trading day that September Henry Hub Natural Gas Futures have held above $3.00. As if the United States is set to finally get a solid domestic energy plan using Nat-Gas as a key component, investors have finally started to warm up to the idea of using natural gas. All you have to do is look at the United States Natural Gas (NYSEMKT: UNG) exchange traded product, where the shares are up 6.1% at $22.01 so far today. Chesapeake Energy Corporation (NYSE: CHK) is up 1.5% at $18.74 on the day. Also up are shares of Clean Energy Fuels Corp. (NASDAQ: CLNE), T. Boone Pickens nat-gas trucking gas station company, with a gain of 1.2% at $14.00. CNBC’s Rick Santelli today talked about the benefits again, but that is nothing new. The reality is that nat-gas got far too cheap and it makes sense to use in the mix of an energy policy. Now traders are buying the you know what out of it.

Just be advised of one thing, this marks more than a 50% jump from the absolute lows in natural gas seen earlier this year. Even if natural gas is cheap by historical standards it would not be a shock if profits start to get locked in as producers increase production.

JON C. OGG

Contact [email protected] for any questions or corrections.

Jon C. Ogg

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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