US Natural Gas ETFs Take a Hit
ETF Central | Feb 20, 2024 09:27AM ET
Natural gas futures plunged to $1.60 per Million British Thermal Units (MMBtu), marking the lowest point since June 2020. This decline came on the heels of a surprisingly low storage draw reported by the US Energy Information Administration (EIA), signaling a shift in the market's dynamics.h2 The EIA Report: A Closer Look/h2
According to the latest estimates by the EIA, working gas in storage was tallied at 2,535 billion cubic feet (Bcf) as of Friday, February 9, 2024. This figure represents a net decrease of 49 Bcf from the previous week that can be attributed to lower heating demand, due to warmer-than-usual weather conditions.
Interestingly, natural gas stocks stood at 255 Bcf higher compared to the same time last year and were 348 Bcf above the five-year average of 2,187 Bcf. This substantial increase, translating to 15.9% more than the typical seasonal average, underscores the acute imbalance between supply and demand in the natural gas market.
h2 Impact on Natural Gas ETFs/h2The repercussions of these developments directly hit the Natural Gas Exchange Traded Funds, with a notable decline in performance. The collective data for this group recorded a staggering plunge of 12.16% over the week. This downturn vividly reflects the immediate impact of the EIA's report and the overarching market sentiment towards natural gas.
h2 Group Data/h2
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