Natural gas exchange-traded funds (ETFs) declined on Thursday despite the Midwest and Mid-Atlantic regions in the United States caught in historically-low temperatures due to a polar vortex.
The United States Natural Gas Fund (NYSEArca: UNG) declined 1.41 percent while the VelocityShares 3x Long Natural Gas ETN (NYSEArca: UGAZ) fell 4.04 percent.
Meanwhile, electrical and gas systems across the Midwest and Mid-Atlantic will be tested as the cold weather continues. The Washington Post is reporting that certain areas in these regions are already experiencing power outages as the demand for gas and electricity rise.
“When the temperature gets this usually low,” Commonwealth Edison spokesman Paul Elsberg said, “we’re bound to see these types of outages.”
— Rick Perry (@SecretaryPerry) January 29, 2019
In December, natural gas ETFs were already declining due to weather forecasts pointing to mild conditions leading to below-average gas-weighted degree days through the end of the month, according to Natural Gas Intelligence reports.