How Well Does UNG Track Natural Gas?
The United State Natural Gas Fund (UNG) has been one of the most popular ETFs in the past few years, as investors have been using this product to make a play on the volatile world of natural gas. But for all of its popularity UNG has gained a reputation as one of the most hated funds in the industry [for more natural gas news and analysis subscribe to our free newsletter].
All About The Brent Oil ETF (BNO)
Crude oil is arguably the most important commodity in the world, as the product and its derivatives make their way into virtually every application of modern life. Despite its popularity and widespread use, there are several misconceptions about the various types of oil, particularly the distinction between Brent oil and WTI. Brent oil is most often extracted and consumed in Northern Europe, giving traders a different way to play the crude market. Although Brent is sometimes overshadowed by WTI, many investors believe that Brent actually offers a better global benchmark for oil [for more Brent news and analysis subscribe to our free newsletter].
Alert: 3 Key Commodities in Backwardation
When it comes to futures investing, contango and backwardation are two phenomenons that traders should always keep an eye on. Backwardation is simply the process whereby near month futures are more expensive than those expiring further into the future, creating a downward sloping curve for future prices over time [for more commodity futures news and analysis subscribe to our free newsletter].
Lessons Learned from a Drunk Commodity Trader
Do you remember that day back in June of 2009 when crude oil suddenly spiked by $1.50? Chances are that you probably don’t, but don’t feel too bad, the trader responsible for the movement has no recollection either. There are many things that one should refrain from doing while under the influence of alcohol, and we can now add commodity trading to the list. Yes, if you can believe it or not, a trader got so drunk three years ago, that he executed a massive position and had absolutely no memory of doing so upon awakening [for more commodity news and analysis subscribe to our free newsletter].
How To Profit From The Gasoline Rally
While many have their sights set on silver’s impressive run, or crude oil’s volatility, another commodity has been surging. Gasoline RBOB futures have amassed a healthy momentum in recent weeks, as this fossil fuel continues test the upper boundaries of its price limits. In fact, the trailing three months have seen RBOB futures surge by nearly 50%, spawning from a number of supply issues, including a refinery explosion last week that thankfully claimed no lives. Low inventories continue to propel RBOB futures while crude oil looks to regain the ground it lost since its recent run at $100 [for more gasoline news and analysis subscribe to our free newsletter].
Profit From Backwardation: Corn, Crude Oil, Soybeans
Backwardation and contango are as inevitable as death and taxes when it comes to commodity investing. No matter what is going on the world, there will almost always be an asset in contango and the same can be said for backwardation. As a quick reminder, backwardation is the phenomenon in which near month futures are more expensive than those expiring further into the future, creating a downward sloping curve for future prices over time [for commodity news and analysis subscribe to our free newsletter].
ETFs to Hedge Rising Prices at the Pump
If there is one economic item that unites Americans in frustration, it’s the rising price of gasoline. The fuel for our vehicles has become a necessity for many of us, so price hikes hit hard in the wallet, affecting purchases of other items. So why are gasoline prices on a long-term upward slope? Some Americans point the finger at greedy oil companies, but that is not the answer. Yes, refining margins do play a role in the price of gasoline, but there is one critical factor behind higher gasoline prices: the rising price of crude oil [for more commodity news subscribe to our free newsletter].
