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Will Natural Gas Market Continue To Heat Up?
Mar 4 2013, 06:26 | includes: UNG
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)

The price of natural gas (short term delivery) continued to rise during last week. Based on the recent EIA report, last week's withdrawal from storage was much higher than the five year average withdrawal. This news may have contributed to the rise in natural gas prices. Will natural gas continue to rally? Let's examine the recent developments in the natural gas markets.

During last week, the future price of Henry Hub (short term delivery) increased by 5%. Moreover, United States Natural Gas (UNG) also rose by 3.9%. As of last week, the Henry Hub future prices were nearly $0.65 per million BTUs above the rate for the same week in 2012. The recent rise in the rate of natural gas may have also partly contributed to the moderate rise of major natural gas and oil producers' stocks such Chevron Corporation (CVX): During the previous week, shares of Chevron increased by 0.8%. If natural gas will continue to increase it could raise the expected revenues of Chevron and thus positively affect the company's stock.