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Natural Gas Prices Lower as Inventory Draw Misses Expectations, Again (UNG)

February 14, 2013 1:57 PM EST Send to a Friend
United States Natural Gas ETF (NYSE: UNG) took a beating on Thursday following the release of weekly EIA inventory data. The data showed natural gas stockpiles fell by only 157 bcf versus an expected 166 bcf drop. This was the second miss in a row, and with production and inventory near highs investors are clearly nervous.

Natural gas futures were lower by over 4 percent on the news and may test yearly lows if underlying trends don't improve. Factors affecting the price of natural gas include temperature forecasts, production levels, inventory, rig count, and nuclear outages.

Natural gas production is expected to increase by 1.1 percent in 2013 to 70 bcf per day. Consumption should rise by 1.2 percent, according to data from the EIA.

United States Natural Gas ETF (NYSE: UNG) was lower by 4.1 percent intra-day on Thursday. Futures traded near $3.15 per million btu.

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