Natural Gas ETFs Rise on Inventories; Hedge Funds Cut Shorts | Page 2 of 2 | ETF Trends

AccuWeather also predicts temperatures in the Northeast and Midwest to remain slightly above normal over the next few days, followed by cool to near normal temperatures next week.

Natural gas ETPs have been consistently trading lower for over three years as the market suffered from a glut in supply, mainly from the increase production from shale mining, and contango weighed on the funds’ performance.

Some natural gas ETPs hold near-month futures contracts and the funds “roll” their position forward by selling soon-to-expire positions in exchange for later-dated futures contracts to avoid physical delivery. The funds lose money on the trade when longer-dated contracts are more expensive than the near-month futures, a condition known as contango.

U.S. Natural Gas Fund


For more information on natural gas market, visit our natural gas category.

Max Chen contributed to this article.