Four of the nine top-performing S&P stocks YTD are natural gas producers – Seeking Alpha

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Natural gas producers have been among the stock market’s worst performers in recent years, but this year they have ranked among the best amid signs a glut could shrink soon.

Four of the nine top performing S&P 500 stocks YTD are natural gas producers, making them among the best-returning commodity stocks and outperforming peers in oil; Southwestern Energy (SWN -1.5%), Range Resources (RRC +1.5%), ONEOK (OKE +3.3%) and Cabot Oil & Gas (COG +0.1%) are up more than 38% so far this year.

Indications of easing supply have helped natural gas prices rebound 31% over the past two months after hitting new lows in March, but the question now is whether the rally marks the start of a powerful turnaround in gas prices, supported by deep cuts from producers, or a short-lived surge based on optimistic forecasts.

ETFs: UNG, UGAZ, DGAZ, BOIL, GAZ, KOLD, UNL, DCNG