The U.S. Energy Information Administration has previously revealed that output in the lower 48 states hit a record high of 72.85 billion cubic feet a day in January. Inventories are at 2.479 trillion cubic feet, their highest level for this time of year, or 60.5% above the average.
In recent weeks, natural gas speculators have been paring bets on lower gas prices. The Commodity Futures Trading Commission said speculators have reduced their “net short” position 16.6% over the week ended April 6.
Interestingly, the natural gas exchange traded note, iPath DJ-UBS Natural Gas TR Sub-Idx ETN (NYSEArca: GAZ), was up 4.2% Wednesday. It should be noted that the ETN has stopped new share issuances, which makes the fund essentially trade as a close-end fund with a premium of 92.65%. [Natural Gas ETN Premium: Don’t Get Stepped on by GAZ]
U.S. Natural Gas Fund
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Max Chen contributed to this article.