Business

Falling natural gas ETF marks another turning point in a volatile trading week


Natural gas flame

straga/iStock via Getty Images

Natural gas prices fall (NG1:COM) put pressure on commodity-linked exchange-traded funds, continuing a volatile week for the group that saw massive price swings.

During the early trading session on Friday, United States Natural Gas Foundation, LP (NYSEARCA:SPOILED) to be -5.1%United States 12-month natural gas fund, LP (NYSEARCA:UNL) to slide 2.5%and ProShares Ultra Bloomberg Natural Gas (NYSEARCA:BOIL) plunge 9.6%.

The drop came as natural gas prices fell as much as 10% on Friday morning. By mid-morning, prices had adjusted slightly, but natural gas was still -5.5% and hovering near $6,587/MMBtu. The latest price drop comes amid an up-to-date forecast calling for warmer temperatures in the US after Christmas.

Friday’s slide continued a rollercoaster week for natural gas ETFs. For instance, after rallying nearly 7% on Tuesday, UNG fell 8% on Wednesday, only to recover with another 7% gain in Thursday’s action.

With natural gas prices falling on Friday, ProShares UltraShort Bloomberg Natural Gas (KOLD) achieved 9.5%. Investment vehicles are designed to rise when the underlying commodity falls.

On a larger scale, despite Friday’s losses, natural gas prices are still higher 74.4% in 2022. UNG year to date +63.8%UNL +84.8%BOIL +34.4%and KOLD -93.6%.

In broader financial news, the main market average opened Friday’s session lower while Treasury yields edged higher.

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button