While natural gas inventories are below what they were last year, the gas market still sees large supplies. [Natural Gas ETF Tests Long-Term Trend Ahead of Supply Data]
“We think gas markets are well supplied and prices will see only modest improvement over the next several years as Marcellus Shale development continues,” Frank Slusser, S&P Capital IQ Editorial, said in the research note.
S&P analysts predict Henry Hub natural gas prices to average $3.61 per million British thermal units in 2013 and average $3.86 in 2014. Natural gas futures are currently trading around $3.6. The United States Natural Gas Fund (NYSEArca: UNG) is up 2.4% year-to-date.
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Max Chen contributed to this article.