Natural gas prices are under pressure as warmer-than-expected weather forecasts across Europe have led to a decrease in demand. The Dutch and British wholesale gas markets saw declines on December 16, 2024, with the Dutch TTF hub's front-month contract dropping by 0.89 euros to 40.25 euros per megawatt hour. Analysts from Energi Danmark noted that the mild weather forecasts have bolstered optimism that Europe will navigate the heating season without significant crises. Additionally, recent developments regarding Hungary and Bulgaria's ability to pay for Russian gas despite U.S. sanctions have further contributed to the bearish sentiment in the market.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) is down 3.38% in pre-market hours on Monday, December 16, falling to $42.56 as of 7:45 AM ET.