Natural gas prices have experienced a notable uptick, driven by forecasts of colder weather and a significant storage drawdown. Meteorologists predict that La Niña conditions could lead to colder temperatures across the U.S. and Europe, increasing heating demand. This weather shift, combined with a record 190 Bcf storage withdrawal reported by the EIA, has tightened supply-demand balances, fueling bullish sentiment in the market. Additionally, production constraints have added support, as natural gas output has struggled to adjust to changing price signals, keeping the market sensitive to sudden demand changes. Analysts are closely watching key resistance levels at $3.444 and $3.60, with the potential for further gains if the colder weather persists.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) rose to $44.91, up 2.29% as of 11:20 AM ET on December 18th.