Advertisement
Canada markets closed

  • S&P/TSX

    21,873.72
    -138.00 (-0.63%)
     

  • S&P 500

    5,071.63
    +1.08 (+0.02%)
     

  • DOW

    38,460.92
    -42.77 (-0.11%)
     

  • CAD/USD

    0.7299
    +0.0001 (+0.01%)
     

  • CRUDE OIL

    82.75
    -0.06 (-0.07%)
     

  • Bitcoin CAD

    88,265.11
    -2,877.16 (-3.16%)
     

  • CMC Crypto 200

    1,389.85
    -34.25 (-2.40%)
     

  • GOLD FUTURES

    2,330.00
    -8.40 (-0.36%)
     

  • RUSSELL 2000

    1,995.43
    -7.22 (-0.36%)
     

  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     

  • NASDAQ futures

    17,463.25
    -201.25 (-1.14%)
     

  • VOLATILITY

    15.97
    +0.28 (+1.78%)
     

  • FTSE

    8,040.38
    -4.43 (-0.06%)
     

  • NIKKEI 225

    37,996.41
    -463.67 (-1.21%)
     

  • CAD/EUR

    0.6818
    -0.0001 (-0.01%)
     

Here's Why Natural Gas Prices Soared Today

Joseph Lu
Updated

There was some good news for natural gas suppliers and investors but bad news for the people living the in the central and west-central areas of the United States.

Natural gas prices jumped 3% today after the latest weather report indicated a demand for heating could be high in the near future.

According to True Weather, in the next six to ten days, the western and eastern U.S. will experience above to well-above average temperatures as they move into more spring-like weather. The central U.S., however, will experience below normal or well-below normal temperatures.

The New York Mercantile Exchange raised the price on Wednesday for June delivery to $3.26/MMbtu (dollars per million btu), a 2.6% growth over Tuesday’s close.

ADVERTISEMENT

The ETFs tracking natural gas are United States Natural Gas Fund UNG, VelocityShares Long Natural Gas ETN UGAZ, and ProShares Ultra Bloomberg Natural Gas BOIL. UGAZ saw the most growth today, spiking 8.38% to $20.30.

Shares of oil and gas giants like Northwest Natural Gas Co. NWN and Patterson-UTI Energy, Inc. PTEN are among the gainers today, up 0.87% and up 1.73%, respectively.

Will the Rally Continue?

As weather warms up towards the month of June, heating demands are likely to drop. However, Midwesterners know how unpredictable the weather is until June comes, so there is still some time before natural gas stock falls.

Stocks that Aren't in the News. Yet.

You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Northwest Natural Gas Company (NWN): Free Stock Analysis Report
 
PRO-ULT BB NG (BOIL): ETF Research Reports
 
Patterson-UTI Energy, Inc. (PTEN): Free Stock Analysis Report
 
VEL-3X LNG NG (UGAZ): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research