An exchange traded fund that invests in natural gas futures was down about 3% on Monday, falling to a new 52-week low on mild weather forecasts.
The $1.3 billion U.S. Natural Gas Fund (NYSEArca: UNG) fell 2.9% to a low of $8.43 a share for the session. The ETF is down about 30% year to date.
Other exchange traded products that follow natural gas prices and producers include iPath Dow Jones-UBS Natural Gas ETN (NYSEArca: GAZ), First Trust ISE-Revere Natural Gas Index Fund (NYSEArca: FCG), Teucrium Natural Gas (NYSEArca: NAGS) and U.S. 12 Month Natural Gas Fund (NYSEArca: UNL).
Natural gas futures have fallen 5.5% since the beginning of November on mild weather, Dow Jones Newswires reports. [Natural Gas ETFs]
“Commercial and industrial demand is suspect and residential weather-related demand has been spotty,” said Stephen Schork, head of trading advisor Schork Group, in the report.
“Prices have stopped here before moving higher in the past,” added Peter Beutel, head of trading advisor Cameron Hanover, in a client note. “This is an area that represents ‘value’ to a number of traders.”
U.S. production of natural gas is increasing although prices have remained stagnant, MarketWatch reported Monday. [ETF Chart of the Day: Natural Gas]
On Friday, there was more bullish call buying in options on U.S. Natural Gas Fund, said Paul Weisbruch, head of ETF/options sales and trading at Street One Financial.
“Given the seasonality of natural gas and the fact that the commodity ETF is trading currently near multi-year lows, it appears that the call buyers are poised for upside in coming months,” he said.
U.S. Natural Gas Fund
