Favorable Risk Reward. $United States Natural Gas Fund LP(UNG)$ Whilst AI stocks has been shooting to the moon, natural gas has been languishing... prices are extremely low now, below the cost of production. History has shown that when this happen the average price was always higher long term. The reason is similar to any commodities, producers will begin to curtail production causing supply to come below demand. A recent report from Baker Hughes showed that gas rig count is now 30% lower than a year ago. The 2 biggest natural gas producers in the U.S. had announced production cuts. Whilst I don't know when prices will rebound, given these statistics and historical low prices, the odds are in favor of a significant rebound. To me it's a highly favorable risk to reward entry as these levels. I would be a buyer at list levels. As always DYOR and make sure you can hold till the rebound.
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