U.S. natural gas futures are experiencing a decline as increased production levels begin to balance out the previously rising demand. As of December, production in the Lower 48 states has surged to 102.9 billion cubic feet per day, up from 101.5 bcfd in November. This increase in supply comes as liquefied natural gas (LNG) export facilities, such as Cheniere Energy's Sabine Pass, approach record gas flow levels, further contributing to the supply glut. Additionally, the Venture Global LNG's Plaquemines plant is gearing up for its initial production, adding to the market's supply. Weather forecasts predicting mostly warmer-than-normal temperatures across the U.S. through December 28, with only a brief cold spell expected, are also contributing to the reduced demand for natural gas.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) is currently priced at $44.18, reflecting a 3.28% decrease from the previous close.