Natural gas has been the worst-performing commodity this year, falling more than 30 percent since the end of December and sliding to a six-year low in April. Weakness in the U.S. dollar, which has buoyed many commodities, including crude oil, has failed to create a spark in natural gas. While investors have not been enthusiastic about the market at this state, I think the fundamentals going forward look great for a rebound, and recommend a call spread to take advantage of higher prices come fall.
Natural gas futures rallied after the latest inventory report from the Energy Information Administration (EIA) showed U.S. natural gas inventories rose 106 billion cubic feet in the week ended June 5, 2009, lower than the consensus analyst forecast. NYMEX July natural gas futures hit $4 per million British thermal units (Btu) after the report. (more)
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