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Commodities eye

Daniel Ang: Natural gas stands out, even in crude's shadow

Warm weather means a bear market for U.S. natural gas until higher seasonal demand kicks in later in the year.

With its spectacular price fall recently, oil has snatched the spotlight from most other commodities. The major reason for this price drop comes from the introduction of shale oil, which disrupted the supply-demand for crude. With all the hype over shale oil, it is easy to overlook oil's less popular cousin, natural gas.

     The advent of hydraulic fracturing, or fracking, means the U.S. has not only managed to mine shale oil efficiently, it has also managed to tap into shale gas. This resource is rapidly gaining in prominence, accounting for 40% of U.S. natural gas production in 2013.

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