Natural gas prices are experiencing an upward trend, driven by a combination of factors including a significant decline in U.S. natural gas inventories and ongoing cold weather conditions in the United States. The recent inventory drawdown has exceeded the average decrease observed over the past five years, contributing to the bullish sentiment in the market. Additionally, despite forecasts indicating a warming trend in the coming weeks, the current cold spell is supporting increased demand for natural gas, particularly in the Midwest region. This seasonal demand is typical for this time of year, as colder temperatures drive higher consumption for heating purposes.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) has responded to these market dynamics, with its price rising to $49.30, marking a 2.27% increase from the previous close.