A higher-than-expected supply injection cooled natural gas related exchange traded funds, with gas futures touching a five-week low on Thursday.
The United States Natural Gas Fund (NYSEArca: UNG) was 0.5% lower Thursday. UNG is down 3.3% year-to-date.
The U.S. Energy Information Administration revealed that natural gas stockpiles increased 87 billion cubic feet in the week ended Sept. 20 while analysts expected a rise in the mid-70 bcf range, according to Investing.
“It’s a big number, no doubt,” Teri Viswanath, director of commodities strategy at BNP Paribas SA, said in a Bloomberg article.. “There is not a lot of demand. The current restocking under way is representative of a well-supplied market.”
Inventories were sitting around 3.386 trillion, about 179 bcf lower year-over-year but 30 bcf above its 5-year average.
NYMEX natural gas futures dipped 0.7%, trading around $3.47 per million British thermal units.