February 21, 2024

Oil still in range...but has natural gas slide bottomed out?

The investor who runs the country’s largest natural gas ETF said he thinks prices have bottomed out.

john love, who manages American Natural Gas Fundciting global demand and production dynamics for his bull case.

“They (producers) are looking ahead,” the chief executive of U.S. commodity funds told CNBC’s “ETF Edge” this week. “This huge export opportunity that’s growing is really what they’re looking at.”

Producers are going through a tough time. natural gas Prices are up 6% for the week, just marking their fourth weekly gain in five.

“We basically had a period coming out of Covid where things looked really good for gas, and then you had this potential supply shock,” he said. “And then, that didn’t materialize.”

Russia reduced energy flows to Europe before last winter. Since then, several European countries, including Germany, have announced new LNG or LNG projects or are expanding existing ones to reduce their reliance on gas exports.

Sal Gilbertie, chief executive of Teucrium Trading, said he thinks natural gas has been trying to find a bottom for the past four to six weeks. According to Gilberty, that sets the stage for a potential backlash.

“You have LNG plants coming back online,” he said. “Natural gas actually looks pretty stable.”

Gilberty, whose firm focuses on the U.S. agricultural market, also pointed to a bullish seasonal trend.

“Demand in the U.S. for summer heat peaking devices will increase,” he added.