Natural gas prices are experiencing a notable upswing on December 18, 2024, driven by a combination of weather forecasts and geopolitical factors. Recent weather models suggest a potential cooling trend in the northeastern United States, which is expected to increase demand for natural gas as temperatures drop. This has sparked renewed interest in the market, with investors adopting a "buy on the dips" strategy. Additionally, geopolitical uncertainties, particularly regarding gas flows to Europe amid the EU's stricter stance on Russian fossil fuels, have heightened demand for U.S. LNG exports. The incoming U.S. administration's favorable stance on LNG export permits further supports this trend, as firms prioritize more profitable exports over domestic sales.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) is trading at $44.97, reflecting a 2.40% increase from the previous close.