Natural gas markets are experiencing a downturn as warmer-than-expected weather forecasts across much of the U.S. are expected to temper heating demand through December 26. Despite a larger-than-anticipated storage draw of 190 billion cubic feet reported by the EIA, which exceeded both last year's and the five-year average, the market remains under pressure. The robust LNG shipments, averaging 14.1 bcf/day in December, and increased domestic production have not been enough to offset the bearish sentiment driven by the weather outlook. Additionally, European gas markets are seeing limited gains due to forecasts of above-seasonal temperatures and increased wind power generation, further reducing gas demand for power.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) is down 2.32% in pre-market hours on Friday, December 13, falling to $44.62 as of 9:15 AM ET.