Basically, even as there are arguments showing that there is plenty of supply of natural gas, the demand for cleaner burning fuels should continue to grow. Demand should continue into the future. Although now it may be at a more normalized pace. So, the timing looks right to begin to enter a position of UNG at these levels.
It still seems likely that clean-burning fuels will be much sought after and natural gas is going to see increased demand. After climbing more than 50% from January into July, United States Natural Gas Fund has dropped just as fast. Now resting just off its consolidation levels, natural gas prices have fallen 30% since the so-called “Enron loophole” was closed for natural gas and heating oil. This is now a demand play, it should provide diversification to hedge the potential for runaway energy prices.