Hurricane Season is Coming, Hello UNG

One bright spot today is the United States Natural Gas Fund, LP (NYSE:UNG) trading up 5% at $8.18.  The demand and supply for natural gas could come under pressure and mean good things for the UNG, thanks to forecasters saying the 2010 Atlantic hurricane season could be the worst since 2005 when Hurricanes Katrina, Rita, and Wilma destroyed the Gulf Coast.

Over the past 12 months United States Natural Gas (UNG) shares have traded between $6.72 and its 52-week high of $14.19.  Today UNG shares are trading at $8.06, up 4% or $0.31 and volume is currently at 14,362,550 shares traded.

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HURRICANE SEASON
(Reuters) The hurricane season runs from June 1 through November 30 and often affects the Gulf of Mexico, home to about 30 percent of U.S. oil production, 11 percent of natural gas production, and more than 43 percent of U.S. refinery capacity.

By Wednesday, companies had shut in 421,350 barrels per day (bpd) of offshore oil production in preparation for Alex, for a total loss of over 817,000 barrel over the past two days, according to the U.S. Bureau of Ocean Energy Management, Regulation and Enforcement. About 919 million cubic feet per day of natural gas had been shut in on Wednesday, for a two-day loss of 1,519 million cubic feet, the data showed.

Bottom line: As the pressure heats up on natural gas, the UNG is the perfect play to bank coin should prices and demand spike.

UNG CHART FUN

SOURCE: http://www.reuters.com/article/idUSTRE66020L20100701