A $1.2 billion ETF that invests in natural gas futures jumped nearly 6% on Monday and is threatening to break above its 200-day moving average for the first time in over a year as the commodity rebounds.
U.S. Natural Gas Fund (NYSEArca: UNG) is up 54% from its April low.
The natural gas ETF touched $22 a share in premarket trading Tuesday. The 52-week low of $14.25 a share was reached in April.
Natural gas prices have risen to the highest levels in over seven months as warm weather in the U.S. drives energy demand.
“Weather forecasts continue to provide support for gas prices, with above to well-above normal temperatures expected across the most of the East in the coming weeks,” Tradition Energy said in a Reuters report Tuesday.