U.S. Natural Gas Fund (UNG) traded higher Thursday although the ETF pared its advance following a report that inventories rose in the latest week.
The natural gas fund climbed for the third straight day as the 50-day moving average crosses above the 200-day to form a so-called bullish golden cross.
The Energy Department on Thursday said natural gas stockpiles rose by 80 billion cubic feet in the latest week, more than analysts had expected.
“With mild temperatures ahead, we’re going to see considerable increases in stocks of natural gas,” said Gordy Elliott, a risk-management specialist at FC Stone, in a Bloomberg report.
UNG, an ETF that tracks natural gas futures, has traded higher after bottoming in April. The fund is up 11.6% the past month although it’s off more than 20% year to date, according to Morningstar data. The fund gained 1.3% on Thursday afternoon.
New natural gas pipelines are expected to add to the oversupply that’s weighed on the commodity’s price in recent years. “Natural gas pipelines coming into service by year end may boost deliveries from the Marcellus shale deposit in the U.S. Northeast by 30%, extending a supply glut that helped send prices to decade lows,” according to a separate Bloomberg report.
U.S. Natural Gas Fund
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