The soaring prices of Crude Oil have come with opportunities in the allied industry of Natural Gas. The price of oil has increased by 167% since 2009 while the price of natural gas has been decreased by about 50%.
[hana-code-insert name=’StumbleUpon’ /][hana-code-insert name=’Reddit’ /] “The natural gas in-dustry presents so many opportunities right now because we’re in a fairly pronounced valley,” said Skip Aylesworth, manager of the $600 million FBR Gas Utility Index Fund (GASFX).
It has been reported that Natural gas prices have lost 29% and have reached the lowest level in more than a decade. This low level of natural gas has been attributed to various factors such as new technology and advancements in exploration techniques. They have resulted in such abundant production of natural gas that lowered the price of natural gas to about $2.50 per million British thermal units. Bloomberg has reported, “The futures fell 29 percent for the quarter and 19 percent in March.”
“We expect the spread between the price of crude oil and the price of natural gas to be sizable for the next three to five years, and I’m going to be playing that spread,” said Ron Muhlenkamp, manager of the $500 million Muhlenkamp Fund (MUHLX).
According to the National Climate Data Center in Asheville, North Carolina, 7577 all-time daily high temperatures were set or matched in March across the U.S. and according to experts warm weather resulted in decline of natural gas prices as less energy was consumed to heat the homes and businesses.