Inventory Build Threatens Natural Gas Rally (UNG)
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United States Natural Gas (NYSE: UNG) is lower by 1.15 percent on Thursday after natural gas futures pulled back from recent highs. An EIA inventory report showed natural gas stockpiles last week rose 77 bcf versus the consensus of 73 bcf. The larger than expected build threatens to derail a rally that sent prices to $3.54 per million btu on Tuesday, its highest level since December. Forecasts for below normal temperatures, along with technical buying, contributed to the rally.
In the past 5 years, stock piles rose 71 bcf on average for this period. Due to an overabundance last year, storage levels in the U.S. remain near record highs, and this is causing volatility in the commodity as investors try to the balance factors that include inventory, production, and demand dynamics.
In the past 5 years, stock piles rose 71 bcf on average for this period. Due to an overabundance last year, storage levels in the U.S. remain near record highs, and this is causing volatility in the commodity as investors try to the balance factors that include inventory, production, and demand dynamics.
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