Natural gas exchange traded funds weakened Thursday on mild temperature forecasts, brushing off an unexpectedly low natural gas supply increase.
The United States Natural Gas Fund (UNG) was down 0.2% Thursday. UNG is up 3.2% year-to-date.
NYMEX natural gas futures were down 0.5% Thursday, trading around $3.69 per million metric British thermal units.
The U.S. Energy Information Administration revealed that the supply rose 46 billion cubic feet for the week ended Sept. 13, compared to expectations of a 55 bcf to 59 bcf increase, reports Myra P. Saefong for MarketWatch.
Natural gas inventories were at 3,299 trillion cubic feet, down 187 bcf year-over-year, but they were 18bcf above the five-year average.
Prices declined as weather forecasts indicated a normal to below-average temperatures across the Midwest and East – natural gas usage in utilities scales back as temperatures fall and consumers cut back on air conditioning.
“I can’t get too excited with regard to the weather forecast from a cooling demand standpoint and it’s too early for significant heating demand,” Stephen Schork, president of Schork Group Inc., said in a Bloomberg article.
Looking ahead, the National Hurricane Center calculates an 80% chance that a tropical cyclone will develop over the Gulf of Mexico in the next five days, Investing reports. Tropical storms disrupt offshore gas rig oeprations.
United States Natural Gas Fund
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Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
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