Thursday, March 18, 2010

United States Natural Gas Fund (NYSEArca:UNG) Down on Oil Prices Spiking

United States Natural Gas Down

Increasing oil prices has put some downward pressure on natural gas, and United States Natural Gas (NYSEArca:UNG) has responded in kind, dropping along with the move - at least for now.

Others have been heartened by the proposal by Obama to switch coal-burning power plants to natural gas. There will be a lot of opposition to that, and it's not clear whether that would pass or not.

Even if it did, growth for coal would still continue as producers are targeting emerging and developing markets, where they see most of their growth happening, along with most commodities.

Either way, natural gas will increase in use, and long term, that will be good news for the United States Natural Gas Fund.

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