Natural gas spiked more than 10% to its highest in over a week on Dec 13 and will likely rise further on forecasts of colder-than-normal weather.
Natural gas seems to gain traction in the weeks ahead. The dual tailwinds of supply disruptions and cooling demand will act as major catalysts.
The commodity is poised to surge further as a fire broke out at a key U.S. export hub in Texas. Shipments from the terminal could be affected for three months.
The energy sector is gaining from the supply-demand asymmetry in the crude oil markets amid the rising global economic activities and the Russia-Ukraine crisis.
Concerns that tighter monetary policies to tame surging inflation will slow down global economic growth have weighed on the risk sentiment last week.
Investors could easily tap the soaring natural gas price with ETFs that deal directly in the futures market. These funds also soared to new highs in many years.
The iPath Series B Bloomberg Natural Gas Subindex Total Return ETN (GAZ) scales a new 52-week high. Are more gains in store?
Wall Street was in a mayhem in April due to mounting inflationary pressures, rising rate worries and geopolitical tensions in Russia and Ukraine.
Stocks are off to their worst start to a year since 1942, as quoted on a CNBC article. But these ETF areas gained handsome returns.
Though Wall Street was downbeat last week, some ETF areas like natural gas, uranium mining, China real estate, wheat and ETFs that offer protection against rising rates rose handsomely.