Storage tanks and gas-chilling units are seen at Freeport LNG, the second largest exporter of U.S. liquified natural gas, near Freeport, Texas, U.S., February 11, 2023.
Reuters/Arathy Somasekhar/File Photo Acquire Licensing RightsDec 1 (Reuters) - Investors have been piling into an exchange-traded fund (ETF) designed to track U.S. natural gas prices, in spite of the commodity's dismal performance in 2023.
The U.S. Natural Gas Fund's (UNG) (UNG.P) price, tied to the performance of futures contracts on the commodity, has plunged 60.7% so far this year, falling 27% in November alone.
Analysts said the drop in the ETF's price came alongside a fall in the price of natural gas sparked by milder than usual weather across the United States in recent weeks.
Natural gas prices fell about 22% in November, the single largest monthly percentage drop since a 40% decline in January.
Persons:
Arathy, Stacey Morris, Morris, UNG, Suzanne McGee, Ira Iosebashvili, Emelia
Organizations:
Reuters, Natural, Analysts, New York Mercantile Exchange, U.S . Energy Information Administration, Thomson
Locations:
Freeport, U.S, Freeport , Texas, United States