Shares of United States Natural Gas (NYSEARCA:UNG) bounced back at the end of last week following the release of the latest storage report, in which the extraction from storage was higher than anticipated. What’s next for UNG and the natural gas market?
Despite the recent jump in prices, UNG is still down by 0.5% since the beginning of March. Conversely, the price of natural gas inched up by 0.5% – this is another indication for the roll decay that kept UNG investors see a modest loss for their investment compared to the price of natural gas.
In the past several weeks the change in storage was very low and the weekly price of natural gas remained relatively flat (compared to previous weeks).
Last week the Energy Information Administration reported of an 18 Bcf extraction from the natural gas underground storage, which was higher pull than market expectations of an 11 Bcf extraction. This brought the storage back down to 1,461 Bcf – this is 75% higher than last year but 11.5% lower than the 5-year average.
For the rest of this report see at Seeking Alpha.