Natural Gas (UNG) Inventories In-Line With Estimates, Remain Below Norm
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Natural Gas inventories for the week ending May 25th rose by 71 bcf inline with analyst estimates. Natural gas inventories, while increasing, are below normal levels.
Natural gas futures were trading at $2.41 prior to the data release. The price of natural gas and United States Natural Gas Fund (NYSE: UNG), the ETF that tracks the futures, has been on the rise after being beaten down for years due to high production and inventory levels. Demand for the commodity has picked up recently as power companies swap out of coal and turn to nat-gas for electricity production.
US EIA reported recently that U.S. power plant consumption of natural gas rose 40 percent in March. At the same time, coal's share of power plant consumption fell 20 percent, confirming industry trends that suggest that the lower price of natural gas is prompting utilities to switch from coal to the cleaner burning, cheaper gas.
Natural gas futures were trading at $2.41 prior to the data release. The price of natural gas and United States Natural Gas Fund (NYSE: UNG), the ETF that tracks the futures, has been on the rise after being beaten down for years due to high production and inventory levels. Demand for the commodity has picked up recently as power companies swap out of coal and turn to nat-gas for electricity production.
US EIA reported recently that U.S. power plant consumption of natural gas rose 40 percent in March. At the same time, coal's share of power plant consumption fell 20 percent, confirming industry trends that suggest that the lower price of natural gas is prompting utilities to switch from coal to the cleaner burning, cheaper gas.
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