United States Natural Gas Fund, LP (UNG) Struggles For A Rebound

Working gas in storage was 1,756 Bcf as of Friday, April 9, 2010, according to EIA estimates. This represents a net increase of 87 Bcf from the previous week. Stocks were 64 Bcf higher than last year at this time and 246 Bcf above the 5-year average of 1,510 Bcf.
Storage Report

Expectations were for a better number. Unfortunately. I say unfortunately because I am still lon here. And it is painful again.

I read this article:
Natural Gas Futures Support Potential For Long Term Reversal Of The Natural Gas ETF (NYSE: UNG)
On April 1st, May natural Gas had powerful rally which on the daily chart reflects the potency of the longest time series support we have mentioned over the last several weeks. The six percent rally that day was a start to building cause for a major reversal in trend.
...prior to entering this ETF, waiting for trade over $4.45 basis May Natural Gas to confirm the change of trend would be wise or the equivalent of $8.09 on “UNG.” We caution against long term investors prematurely entering this market.



And actually UNG is struggling to build a base to project prices toward $8.50, a first possible objective. If I manage to close this break even I swear I will never trade UNG any more.....

I was in Qatar a few weeks ago. You know that the country is a big player expanding its production.
The fuel’s value is falling as Qatar raises liquefied natural gas output 44 percent this year and new supplies from North American shale rock cut U.S. imports to their lowest in more than a decade last year.

Algeria, Africa’s biggest exporter of natural gas, is getting no help from Russia and Qatar in curbing production to increase prices.
To know more about the situation you can read:
Gas OPEC Boosting Output Sends Prices Lower for Worst Commodity
Algeria’s Khelil said March 16 in Vienna that users are reducing the volumes they take under multiyear contracts in favor of more spot gas. He called for a reduction of sales on European spot markets, such as the U.K.’s National Balancing Point, and said a gas price of $13 to $14 a million Btus was the “target” with crude oil near $80 a barrel.