Why Natural Gas Prices Are Rising
On August 9, 2017, natural gas (UNG) September futures closed at $2.88 per MMBtu (million British thermal unit).
Aug. 11 2017, Updated 10:58 a.m. ET
Natural gas futures
On August 9, 2017, natural gas (UNG) September futures closed at $2.88 per MMBtu (million British thermal unit). On the same day, natural gas prices rose 2.2 %. Between August 2 and August 9, 2017, natural gas active contracts rose 2.6%. Forecasts of higher temperatures helped natural gas prices to rise.
In the seven calendar days to August 9, 2017, US crude oil (USL) (DBO) active futures fell 0.1%. In the same period, the S&P 500 Index (SPY) and the S&P 400 Mid-Cap Index (IVOO) fell 0.1% and 0.9%, respectively. However, the Dow Jones Industrial Average Index (DIA) rose 0.1% in the trailing week.
Moving averages
On August 9, 2017, natural gas active futures were 1.3%, 2.6%, 6.2%, and 6.9% below their 20-day, 50-day, 100-day, and 200-day moving averages, respectively. Again, the 50-day moving average was trading 6.9% below the 200-day moving average, a bearish signal, which suggests that natural gas prices are not fully stable.
