Natural gas futures and exchange traded funds (ETF) that track them are set to make their largest weekly gains since May as signs of a recovery in the economy continue to emerge.

An uptick in demand for industrial fuels is helping natural gas futures regain the ground they lost this summer. Reg Curren for Bloomberg reports that confidence among U.S. consumers increased in September for the first time in three months as the pace of job losses slowed and the economy showed signs of pulling out of the recession.

A smaller-then-expected increase in U.S. stockpiles also contributed to the spike, and demand is also expected to increase as other power generators such as coal and nuclear plants shut down for maintenance.

Natural gas for October delivery was trading at $3.234 per million British thermal units. UNG ETF advanced $1.08, or 11%, to $11.18, down 52% this year. The fund owns futures and swaps and tries to track price changes in the fuel.

  • United States Natural Gas (NYSEArca: UNG): down 51.8% year-to-date

  • First Trust ISE/Revere Natural Gas Index Fund (NYSEArca: FCG): up 35.6% year-to-date


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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.