Fire Lit Under United States Natural Gas (UNG) After Lower Inventory

June 14, 2012 10:49 AM EDT
United States Natural Gas (NYSE: UNG) is popping today as inventory levels for natural gas come in at 67 bcf vs. an average estimate of 73 bcf, showing a lower than expected weekly rise in inventory. Stockpiles gained an adjusted 72 bcf in the same week last year and on average over the past five years have gained 88 bcf for that week, according to data from Reuters.

Stockpiles are still high for this time of year, and lack of storage could drive prices lower this summer, but in general natural gas appears attractive below $2.8 per million British thermal units, which is said to be the level at which coal begins to look attractive again, say analysts.

UNG last traded at $16.33, up 7 percent.

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