Velocityshares 3x Inverse Natural Gas ETN (NYSEARCA:DGAZ) Dips As Trucking Fuel Goes Lean


Dallas, Texas 08/29/2014 (FINANCIALSTRENDS) – VelocityShares 3x Inverse Natural Gas ETN (NYSEARCA:DGAZ) is apparently affected following news of natural gas not succeeding in delivering economics of use, when used as  trucking fuel.

The gradual fall in natural gas prices in previous times led to several companies exploring the use of natural gas in trucking as well as rail transport industry.

VelocityShares 3x Inverse Natural Gas ETN (NYSEARCA:DGAZ) has been marking the changes happening with the adoption and exploring of natural gas as fuel source.

Following considerable persuasion both trucks with long haul road transport contracts and the rail industry looked beyond their mainstay diesel fuel towards greener options such as compressed natural gas and liquefied natural gas.

But the adoption of the new low-cost fuel has been less rapid than expected.

Only 0.1% of the US transports use this alternative option, even though prices of this gas in the country are lesser by one-third of worldwide prices.

VelocityShares 3x Inverse Natural Gas ETN (NYSEARCA:DGAZ) however, reflects the on-off situation in the trucking and rail industry when the argument of cost and services become necessary.

The uncertainty behind the prices remaining as low, in the long term continue to affect the performance of this sector.

As of this juncture, the price comfort which the US enjoys in both the oil as well as gas prices has definitely brought down the imports pressures. For most truckers the issue is with coversion from the conventional to natural gas costs. Later, if and when, the prices of natural gas were to rise then it would not make economic sense for these large-sized players. Most conversions, if any thus far are confined to specific requirements of the rail and road industry.

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