U.S. Natural Gas Fund (UNG) fell 4.6% in midday trading Thursday following a report estimating inventories rose more than expected in the latest week.
UNG is off nearly 15% for the trailing month on forecasts of cooler temperatures, which reduce demand for electricity in the summer.
The Energy Information Administration reported a net increase of 95 billion cubic feet in U.S. inventories for the week ended June 21, more than analysts had expected, according to MarketWatch.
“Meanwhile, ongoing expectations for reduced demand also weighed after weather forecasts pointed to mild weather in the Northeastern U.S. states next week,” according to a separate report from Investing.com.
UNG, which tracks natural gas futures, fell to its lowest level since late February.
U.S. Natural Gas Fund
The opinions and forecasts expressed herein are solely those of John Spence, 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.
- Nature & Environment