Natural Gas: Bear Trap or More Downside to Come?
On July 10, natural gas August futures fell 1.4% and settled at $2.788 per MMBtu (million British thermal units). Natural gas closed below the psychologically important level of $2.8. Chesapeake Energy (CHK), Antero Resources (AR), and Range Resources’ (RRC) returns were 0.2%, -0.4%, and -3.1%, respectively, on July 10. The fall in natural gas prices would have been a drag on these natural gas–weighted stocks. On July 10, the United States Natural Gas ETF (UNG) and the ProShares Ultra Bloomberg Natural Gas ETF (BOIL), which follow natural gas futures, fell 1.7% and 3%, respectively.