Natural gas prices have experienced a notable uptick, driven by forecasts suggesting a potential cooling trend as the year draws to a close. This optimism has been fueled by colder weather models, particularly the 12Z ECMWF and GFS runs, which indicate a shift towards cooler temperatures in early January. Additionally, LNG export data has shown an increase in feedgas volumes to Plaquemines, reaching a new high, although this was later revised. These factors have contributed to a positive sentiment in the market, encouraging investors to anticipate a rise in demand for natural gas as temperatures drop.
The natural gas futures market has also seen gains, with the January Nymex contract rising by 7.8 cents to $3.386/MMBtu in early trading on December 18, 2024. This follows a significant surge in the previous session, where the prompt month contract increased by 20 cents. Despite some resistance at the $3.40 level, the market remains bullish, supported by falling temperatures in the Northeastern United States. Analysts suggest that the market is currently a "buy on the dips" scenario, with potential for further upward movement if the $3.50 level is breached.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) is currently priced at $44.79, reflecting a 2.00% increase from the previous close.