An exchange traded fund that invests in natural gas futures fell to a new all-time low on Tuesday as trading volume in the ETF has picked up lately.

U.S. Natural Gas Fund (NYSEArca: UNG) was fractionally negative on Tuesday but pared its loss after touching a low of $6.36 a share.

The commodity ETF ended 2011 with a loss of about 46% as lower natural gas prices and contango in the futures markets weighed on the fund.

Yet in the options market, bullish call buyers have surfaced recently in U.S. Natural Gas Fund, according to Street One Financial.

Amid colder weather forecasts for much of the Northeast U.S., the call buyers are “likely making a play on higher natural gas prices for the near term,” Street One said. “We point out that UNG traded very heavy volumes late last week and plunged to multi-year lows.”

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