The United States Natural Gas Fund (NYSEArca: UNG) and the iPath Bloomberg Natural Gas Subindex Total Return ETN (NYSEArca: GAZ) along with other natural gas-related exchange traded products are often subject to seasonal trends. With winter approaching, the seasonality of natural gas could be advantage for the commodity.
However, market observers warn that natural gas demand will dip as the seasons change and temperatures cool. Some analyst are already warning of a potentially new record high natural gas inventory levels in the months ahead.
Still, natural gas may find further support as we head toward the winter months and heating demand rises.
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Recent data showed natural gas storage levels revealed rose 36 billion cubic feet, compared to expectations of a 41 billion injection, a 51 billion cubic feet jump in late August and 72 billion cubic feet for the same period last year.
“UNG is bumping up against the $9 region, threatening a breakout … we should be able to move higher into this winter season,” Todd Gordon of TradingAnalysis.com told CNBC.