Natural Gas Buoyed by Storage Data (UNG)

December 6, 2012 10:56 AM EST
Natural gas futures and United States Natural Gas ETF (NYSE: UNG) moved higher early on Thursday after a government report showed a larger than expected drop in inventory. Analysts were calling for a weekly decline of 66 bcf, but today’s report showed stockpiles declined 73 bcf.

Considering already high storage levels, natural gas is highly sensitive to inventory data, and today’s report provided additional relief to some investors who remain concerned about supply glut.

Yesterday natural gas got a boost after a government report endorsed exports of liquefied natural gas. Exporting gas is bullish for prices, and according to the report, just as bullish for jobs and the economy. Many are hoping the report will help shape government policy with an increased focus on exports.

Traders are also following weather forecasts, with some reports calling for a drop in temperatures in December, which could lead to additional natural gas use in power generation.

Natural gas futures trades near 3.75 per million btu.

United States Natural Gas ETF (NYSE: UNG) traded higher by 1.6 percent following the release of inventory data.

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