Natural gas exchange traded funds are heating up on speculation of an unseasonably cold spring and lower-than-expected U.S. supplies.

The U.S. Natural Gas Fund (NYSEArca: UNG) was up 2.8% during trading Thursday. The fund has increased 9.4% over the past month. The natural gas ETF was up an additional 2.3% in early trading Friday.

“The cold temperatures, especially in the Midwest, are giving this market a boost,” Phil Flynn, senior market analyst at Price Futures Group, said in a Bloomberg article. “I’m expecting an above-average drawdown and the cold temperatures are adding to demand.”

The Commodity Weather Group LLC is predicting below-normal temperatures across the Dakotas and into the Northeast from March 23 through March 27.

Meanwhile, the U.S. Energy Information Administration announced that natural gas inventories are 18.5% lower year-over-year, the Associated Press reports. Nevertheless, inventory levels are still 11.4% above their five-year average.

Natural gas futures were 3.1% higher Thursday, trading at $3.79 per million British thermal units.

Showing Page 1 of 2