Why Natural Gas Stocks Crashed This Week

Just when investors expected natural gas stocks to end 2021 on a strong note, the rally in most stocks was cut short this week as catalysts behind their recent run-up appeared to fade. As of 11 a.m. ET Friday, here's how some of the natural gas stocks were faring for the week:

Each of these stocks were up by double digits in just the three months through last Friday, popping alongside natural gas prices, with Comstock Resources gaining nearly 60% during the period.

With low natural gas inventories triggering fears of a potential supply crunch, especially as we head into winter, when demand for gas is at its peak, natural gas prices were flying through the roof before the rally came to a grinding halt this week. Prices crashed nearly 25%, and currently hover around $4.10 per million BTUs as of this writing, versus nearly $5.50 last Friday.

Source Fool.com