The investor, who manages the country’s largest natural gas ETF, said he believes prices have bottomed.
John Love who made it United States Natural Gas Fundcites global demand and production dynamics for its bull case.
“They are [producers] “We’re looking to the future,” the US Commodity Funds CEO told CNBC’s ETF Edge this week. “This huge export opportunity that’s growing is really what they’re eyeing.”
The producers have gone through a difficult phase. natural gas Prices are up 6% this week just posting their fourth positive week in five.
“Basically, after the coronavirus crisis, we had a period where things were looking pretty good for natural gas, and then there was this potential supply shock,” he said. “And then that didn’t happen.”
Russia reduced energy flows to Europe before last winter. Since then, several European countries, including Germany, have announced new LNG or liquefied natural gas projects or are expanding existing ones to reduce their reliance on natural gas exports.
Teucrium Trading CEO Sal Gilbertie said he believes natural gas has been trying to bottom for the past four to six weeks. According to Gilbertie, it sets the stage for a possible rally.
“There are LNG plants that have been shut down and are coming back on line,” he said. “Natural gas actually looks pretty stable.”
Gilbertie, whose company focuses on the US agricultural market, also points to a seasonal uptrend.
“In the US, demand for top-of-the-line appliances for the summer heat will increase,” he added.