U.S. Natural Gas Fund Premium at 0.12% on Nov. 1

The U.S. Natural Gas Fund, the largest exchange-traded fund in the fuel, closed at a premium of 0.12 percent on Nov. 1, according to figures on the fund’s website. A premium means that the closing price of the shares is higher than the value of its underlying holdings in the fuel.

Natural gas for December delivery fell 15.3 cents, or 3.9 percent, to $3.781 per million British thermal units on the New York Mercantile Exchange on Nov. 1.

================================================================================
                        Nov. 1  Oct. 31  Oct. 28  Oct. 27  Oct. 26  Oct. 25
                          2011     2011     2011     2011     2011     2011
================================================================================
                         ----------------------Per Share----------------------
Premium/discount         0.12%    0.00%    0.11%    0.46%    0.23%   -0.11%
Net Asset Value          $8.67    $9.03    $9.00    $8.64    $8.66    $8.84
Closing price            $8.68    $9.03    $9.01    $8.68    $8.68    $8.83
                         ----------------Quantity of Fund Holdings-------------
NYMEX NG Dec. 2011       5,813    5,501    5,501    5,501    5,501    5,157
================================================================================
                        Nov. 1  Oct. 31  Oct. 28  Oct. 27  Oct. 26  Oct. 25
                          2011     2011     2011     2011     2011     2011
================================================================================

NYMEX NN Dec. 2011      17,950   17,950   17,950   17,950   17,950   17,950
ICE LOT Swap Dec. 2011  45,053   45,053   45,053   45,053   45,053   45,053
================================================================================

NOTE: To sidestep position limits imposed by the Commodity Futures Trading Commission, the fund buys bilateral, over-the-counter swaps that are not subject to exchange limits. These swaps are fully collateralized with investment grade counterparties.

The fund aims to track the price of natural gas delivered at Henry Hub in Erath, Louisiana, the delivery point for the future traded on the New York Mercantile Exchange. The ETF buys the near-month contract, then rolls forward by selling it before expiration and buying the following month.

SOURCE: United States Natural Gas Fund

To contact the reporter on this story: Sarina Yoo in Seoul at kyoo3@bloomberg.net

To contact the editor responsible for this story: Alex Tanzi at atanzi@bloomberg.net