With layoffs, bankruptcies and production shut-downs, the energy sector may be setting itself up for higher oil and gas prices; especially this coming winter.
There’s potential for brutally cold winter temperatures from decreased sun-spot activity (called solar minimum) while at the same time producer output is contracting or disappearing altogether
In a paradoxical price action set-up, UNG, the commodity tracking ETF, may have just signaled a long term bottom.
Discussion and technical analysis of UNG is here.
As of this post and with natural gas prices declining for so long, looks like today’s action is a short squeeze.
Now is the winter of our discontent
