Global Courant 2023-05-14 00:10:14
The investor who ran the country’s largest natural gas ETF said he believes prices have bottomed out.
John Love, who the United States Natural Gas Fundcites global demand and production dynamics for its bull case.
“They (producers) are looking to the future,” the CEO of US Commodity Funds told CNBC’s “ETF Edge” this week. “This huge export opportunity that’s growing is really what they’re looking for.”
Producers are coming from a difficult period. Natural gas prices were up 6% this week and just completed their fourth positive week in five.
“We actually had a period coming out of Covid where things looked pretty good for natural gas, and then you have this potential supply shock,” he said. “And then it didn’t work out.”
Russia reduced energy flows to Europe in the run-up to last winter. Since then, several European countries, including Germany, have announced new LNG or liquefied natural gas projects or expanded existing projects to reduce their dependence on natural gas exports.
Teucrium Trading CEO Sal Gilbertie said he believes natural gas has been trying to build a bottom for the past four to six weeks. According to Gilbertie, it clears the way for a possible rally.
“You have LNG plants coming back online that were shut down,” he said. “Natural gas actually looks pretty stable.”
Gilbertie, whose company focuses on the US agricultural market, also points to an upward seasonal trend.
“U.S. demand for peak summer heat units will increase,” he added.
