Port St. Lucie, FL (PRWEB) October 26, 2010
T & K Futures and Options, Inc. believes that natural gas futures prices are too cheap. The winter heating season is right around the corner and the markets seem to have already factored in the most bearish scenario imaginable for natural gas supply and demand forecasts. At these levels, the risk would seem to be to the upside for investors.
There is plenty of bearish news factored into the natural gas futures markets lately. Many large investors such as hedge funds and commodity funds have left the markets according to them most recent CFTC Commitment of Traders report. Underground supplies are up significantly because of shale production and there was less demand over the summer as electricity consumers cut back on air conditioning usage. According to data published by Baker Hughes, the Gulf of Mexico rig count is up by 34% to 966 from 721 from a year ago. All this bearish news in the market could be setting up a major contrarian investor play and for natural gas prices to rise significantly over the next 12 months. Visit http://www.tkfutures.com/natural_gas.htm to learn more about natural gas futures and options trading.
A cold winter could cut into the current underground natural gas supplies significantly over the next few months and hurricane season is still here for another month. Any increases in demand or disruptions in the supply of natural gas as it moves from point A to point B could spark a considerable short covering rally pushing natural gas futures prices much higher. Visit http://www.tkfutures.com/education.htm to learn more about the mechanics of futures and options trading.
The author of this article is a 17 year veteran of the natural gas futures and options markets and the president of T & K Futures and Options, Inc. Futures, options and foreign exchange products carry significant risk of loss and only risk capital should be used for this type of investment. Visit http://www.tkfutures.com/futures_trading_account.htm to see the various account plans available for futures and options investors. Past performance is not indicative of future results.