Natural gas prices are experiencing a notable upswing, driven by a combination of factors including a significant drawdown in U.S. natural gas inventories and short-covering ahead of potentially colder weather in January. The recent inventory decline has exceeded the average decrease observed over the past five years, providing a bullish impetus to the market. Additionally, Chevron's long-term sales agreement for the Lake Charles LNG project has further bolstered market sentiment. Despite forecasts indicating a warming trend into early 2025, the immediate focus remains on the potential for a cold snap, which could sustain the current price momentum.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) has risen to $50.88, marking a 5.53% increase as of 1:16 PM ET on December 20, 2024.