Natural gas prices have hit a 21-month high and related exchange traded funds have been on a tear as American households keep the heat on during the stubbornly cold weather.
Natural gas futures rose 4.4% to $4.4 per million British thermal units Thursday after the U.S. Energy Information Administration announced lower-than-expected rise in natural-gas stockpiles to $31 billion cubic feet for the week ended April 12, compared to an anticipated rise of 33 bcf to 37 bcf, MarketWatch reports. [ETF Chart of the Day: Natural Gas]
“It’s [supply] injection season, but the late spring cold snap is supporting demand,” Beth Sewell, managing partner at Quantum Power & Gas Services, said in the MarketWatch article. “We also think investment funds are moving funds into natural gas as the other commodities aren’t doing much.”
Typically, natural gas stockpiles begin to expand during this time of the year as warmer spring temperatures diminish demand for natural gas.
“Certainly the weather is going to mean some weak injections in April, and maybe even in May. That is certainly bullish,” Kent Bayazitoglu, an energy-market analyst at Gelber & Associates, said in a Fox Business report.
United States Natural Gas Fund
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Max Chen contributed to this article.