UNG Flying as Natural Gas Inventories Deliver
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United States Natural Gas ETF (NYSE: UNG) is on the move after weekly inventories showed a build of 62 bcf, below a Dow Jones survey that called for an injection of 64 bcf. The buildup is below last year's 90 bcf build for the same period and the average five year build of 87 bcf.
Natural gas traders are also following key weather developments. A NOAA forecast on Thursday called for above-normal temperatures for the US through September, which might be supportive of natural gas prices and UNG. Also supportive is a Hurricane Center report that said there was a 30 percent chance that a low pressure system in the Gulf will develop into a cyclone in the next 48 hours. For now, traders are dismissing the weather developments in the Gulf, as they don’t appear to be a risk to production in the area.
United States Natural Gas ETF is trying to buck a trend that sent natural gas futures to ten year lows early in the year. Futures prices tested medium-term highs near 2.80 twice in the past 2 months and was rejected both times. Prior to the inventory data, natural gas futures traded at 2.54. UNG traded at 17.63.
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Natural gas traders are also following key weather developments. A NOAA forecast on Thursday called for above-normal temperatures for the US through September, which might be supportive of natural gas prices and UNG. Also supportive is a Hurricane Center report that said there was a 30 percent chance that a low pressure system in the Gulf will develop into a cyclone in the next 48 hours. For now, traders are dismissing the weather developments in the Gulf, as they don’t appear to be a risk to production in the area.
United States Natural Gas ETF is trying to buck a trend that sent natural gas futures to ten year lows early in the year. Futures prices tested medium-term highs near 2.80 twice in the past 2 months and was rejected both times. Prior to the inventory data, natural gas futures traded at 2.54. UNG traded at 17.63.
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