Natural Gas Sinks on Mild Weather Forecast (UNG)

November 9, 2012 2:31 PM EST
According to report by Weather Derivatives, heating demand is projected to be 2 percent below norms from November 15th to November 19th. Considering record high storage levels in natural gas, traders are taking this bit of news as reason enough to send natural gas price lower today.

United States Natural Gas ETF (NYSE: UNG), a popular vehicle for trading the commodity, is lower by 3 percent intraday on Friday, as futures prices break below $3.50.

Inventory data released yesterday showed natural gas inventories are over 6 percent higher relative to the 5-year average.

On a bullish note, rig count fell by 11 this week to 413, according to data from Baker Hughes.

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