Natural gas exchange traded funds weakened Thursday on mild temperature forecasts, brushing off an unexpectedly low natural gas supply increase.
The United States Natural Gas Fund (NYSEArca: UNG) was down 0.2% Thursday. UNG is up 3.2% year-to-date.
NYMEX natural gas futures were down 0.5% Thursday, trading around $3.69 per million metric British thermal units.
The U.S. Energy Information Administration revealed that the supply rose 46 billion cubic feet for the week ended Sept. 13, compared to expectations of a 55 bcf to 59 bcf increase, reports Myra P. Saefong for MarketWatch.
Natural gas inventories were at 3,299 trillion cubic feet, down 187 bcf year-over-year, but they were 18bcf above the five-year average.
Prices declined as weather forecasts indicated a normal to below-average temperatures across the Midwest and East – natural gas usage in utilities scales back as temperatures fall and consumers cut back on air conditioning.