Velocityshares 3X Long Natural Gas ETN (UGAZ)

[budmgd]

more color on today's action: funny how someone's forecast for a 4 day period, two weeks from now can move traders so much

Dec Nymex natural gas (NGZ19) this morning is down by -0.137 (-4.91%).

Dec nat-gas prices gapped lower this morning and dropped to a 1-week low on forecasts for warmer temperatures to return to the U.S. by the end of this month. Commodity Weather Group LLC today forecast normal temperatures will return to the eastern half of the U.S. during Nov 21-25.

High U.S. nat-gas production continues to be a bearish factor with lower-48 nat-gas production today up +9.5% y/y at 94.6767 bcf/d. Strong U.S. nat-gas output has caused U.S. nat-gas inventories to rise sharply in recent months to the current level of +16.2% y/y from -22.3% y/y last March.

Dec nat-gas surged to an 8-1/2 month high last Tuesday after well-below temperatures in the lower 48 U.S. states fueled fund buying of nat-gas futures on the prospects for increased heating demand for nat-gas.

Last Thursday's weekly EIA report of +34 bcf pushed nat-gas inventories up to a 23-month high of 3,729 bcf in the week of Nov 1. Inventories are up +16.2% y/y and are +0.8% above the 5-year average