NEW YORK (TheStreet) -- Warm weather has put a chill in natural gas prices for investors in recent trading.
But today's release of natural gas inventories by the United States Energy Information Agency could reverse the recent downward price trend. In premarket trading, United States Natural Gas (UNG), the main exchange traded fund for natural gas, was up nearly 2.50%.
Last Thursday, the Energy Information Agency reported that natural gas inventories increased 38 bcf (billion cubic feet) for the week ended Oct. 25. That brought current inventories to 3,779 bcf, above the predicted level of 34 bcf. As a result of the greater supply and lower demand than expected by the analyst community, natural gas prices dropped that day from 3.62 per MMBtu (millions of British thermal units) to 3.58.
The impact was naturally seen in natural gas securities, too.
Over the last week of market action, United States Natural Gas has cratered by more than 3.6%. Over that same period, Chesapeake Energy (CHK) fell by over 6.8%. Southwestern Energy (SWN), by 2.32% and Range Resources (RRC), by 3.98%, have plunged, too.
Overall, United States Natural Gas is off for the last week, month, quarter, six months, and year of market action. It is the same story for energy across the globe now, due to the warmer weather: Brent crude is down to its lowest levels in four months due to mild temperatures in Europe. The East Coast in the United States is enjoying a pleasant outlook, with temperatures predicted well into the 60s for New York City today. Last winter was the coldest in decades for much of China and India, but this year is shaping up to be much warmer.