Natural Gas Back in Green as Cold Weather Looms (UNG)
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United States Natural Gas ETF (NYSE: UNG) rose as natural gas prices reversed losses on Tuesday, with futures gaining close to 3 percent to trade near $3.85 per million btu.
The move higher is being tied to forecasts for colder temperatures next week and inventory forecasts that call for declines in stockpiles.
The EIA is expected to announce weekly inventory data Wednesday, a day early in anticipation of Thanksgiving, and traders are positioning for a drop in inventory as demand remains strong in light of cold temperatures and nuclear outages.
Longer term, traders continue to keep a close eye on production, which to date has remained strong thanks to technology improvement, despite a year-over-year decline in rig count. For now, lingering concerns about a supply glut have eased, though storage levels remain above average.
United States Natural Gas ETF traded higher by 2.55 percent heading into the close of trading on Tuesday
The move higher is being tied to forecasts for colder temperatures next week and inventory forecasts that call for declines in stockpiles.
The EIA is expected to announce weekly inventory data Wednesday, a day early in anticipation of Thanksgiving, and traders are positioning for a drop in inventory as demand remains strong in light of cold temperatures and nuclear outages.
Longer term, traders continue to keep a close eye on production, which to date has remained strong thanks to technology improvement, despite a year-over-year decline in rig count. For now, lingering concerns about a supply glut have eased, though storage levels remain above average.
United States Natural Gas ETF traded higher by 2.55 percent heading into the close of trading on Tuesday
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