Natural gas markets are experiencing a surge in demand, driven by geopolitical developments and weather forecasts. President-elect Donald Trump's recent threat to impose tariffs on the European Union unless it increases its purchase of U.S. oil and gas has heightened expectations for stronger U.S. LNG exports. This geopolitical maneuver comes as the EU seeks alternative gas sources amid decreasing Russian gas supplies through Ukraine. Additionally, forecasts of a cold front in the U.S. by mid-January have led to an 18 billion cubic feet increase in demand projections, further supporting the bullish sentiment in the natural gas market.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) is up 2.63% in pre-market hours on Friday, December 20, reaching $49.48 as of 7:15 AM ET.