By Stephen Schork on Seeking Alpha:

Since March the number of shares outstanding in the United States Natural Gas (UNG) exchanged-traded fund have surged 260%, from 37,500 to 98,000. At the same time, interest in the equivalent crude oil ETF, the USO, has dropped 39%, from 157,800 at the end of February to 96,100. Thus, last week equal amounts of bets were being placed on both commodities, whereas two months ago passive investors in energy favored crude oil at a 4:1 margin.

Each week, we publish ETFMarketIntelligence: FOCUS on Energy. As noted in the report, just as we saw in February in the oil ETF, the flood of money into the UNG has undoubtedly helped to establish a floor in the NYMEX market – regardless of extant weak fundamentals – and is now propelling the market higher. To wit, with natural gas’s strong performance last week, we imagine that will serve to attract...

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