United States 12 Month Natural Gas
The United States 12 Month Natural Gas (NYSE:UNL) is a fund tied to the spot price of natural gas. That price has dropped big time in 2012, as a warmer than average winter curbed demand, while new supply came online thanks to better discovery technologies, and new extraction methods such as fracking. At some point, the current oversupply situation will evaporate into normal levels due to rising demand for liquefied natural gas, which unlike normal natural gas can be transported to other countries. Also, more usage of natural gas for transportation in “nat gas” vehicles is expected this year, as well as in the years to come, as stricter emission standards around the world go into effect. When the fundamentals in the space turn, I think we’ll see UNL make a big bounce off its 21.3% year-to-date decline.