The natural gas-related exchange traded fund (
) has hit a new low, trading downward as a result of rolling
futures contracts. Pessimistic traders are dumping the commodity in
favor of shorting natural gas.
United States Natural Gas (NYSEArca: remarks John Spence
for MarketWatch. The fund is down more than 20% so far this month,
and it recently touched a new record low of $6.50 per share.
The Commodity Futures Trading Commission (CFTC) reported that
large institutional investors are taking more money out of long
positions than short positions,
comments Claudia Assis for MarketWatch
. The commodity ended on Friday at an 11-month low. [
Natural Gas ETFs Hit By Supply Glut.
Natural gas prices hit a low on Wednesday, dropping below $4 per
million British thermal units,
reports Mark Peters for
The Wall Street Journal
. Utilities have effectively shifted their energy concerns over to
the cheap natural gas, which has dramatically decreased coal
Consumer demand for electricity, and by extension
, is likely to diminish over the coming weeks as the weather starts
to cool. Total demand is still tied to the outlook of the U.S.
economy. However, a hurricane hitting the gas producers in the Gulf
of Mexico could drive prices higher. [
An Unusual ETF to Play Natural Gas.
For more information on natural gas,
visit our natural gas category
. According to the
, nearly all natural gas ETFs have been in pain for the last three
months. UNG is one of the hardest-hit, but also down in the time
First Trust ISE-Revere Natural Gas (NYSEArca:
, down 10%
iShares Dow Jones U.S. Oil & Gas Exploration &
Production (NYSEArca: IEO)
, down 8.6%
United States 12-Month Natural Gas (NYSEArca:
, down 17.6%
The Oklahoma ETF (NYSEArca: OOK)
, down 2.9%; energy names make up about 60% of the fund
Max Chen contributed to this article.