Natural gas shoots higher today, contango alive; UNG and UNL effects

Natural gas has risen significantly today, with the February contracts rising by almost 2% this morning, and more than 4% higher than at the same time yesterday (please see post and table yesterday). Please see the current contango as well as the hourly prices for February contracts.

There is very little contango/backwardation until march contracts, but contango is in full force after that. UNG should not be penalized on rollover this month (but on the other hand, UNL should be greatly penalized).

Indeed, since contango started subsiding late last year, UNG has outperformed UNG (UNL is the ETF that tracks 12 month natural gas contracts)