Natural gas prices are experiencing a significant decline as the market reacts to a combination of factors, including milder weather forecasts and inventory dynamics. European natural gas futures have dropped below €42 per megawatt-hour, driven by above-average temperatures expected in north-west Europe from December 15 to 23, which are reducing heating demand. Despite minor outages at Norwegian facilities, pipeline and LNG supplies remain stable, easing concerns about storage depletion. In the U.S., natural gas futures have fallen nearly 3.5% at the start of the week, continuing a downward trend from the previous week. This decline follows a larger-than-expected drop in inventories, which, while significant, still leaves U.S. inventory levels above the five-year average. The market is also adjusting to the upcoming contract rollover, with the January contract set to move to February, which is trading at a lower price.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) is down 5.04% in pre-market hours on Monday, December 16, falling to $41.83 as of 6:00 AM ET.