The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) is experiencing significant downward pressure due to a sharp rise in natural gas prices. As of December 30, 2024, natural gas futures have surged by 15.98%, reaching a price of $3.92. This increase is primarily driven by unexpected cold weather forecasts across key regions in the United States, which have heightened demand for heating fuels. Additionally, recent reports indicate a tighter supply outlook due to production disruptions in major gas-producing areas, further exacerbating the upward pressure on natural gas prices.
The current market dynamics have led to a substantial decline in the KOLD ETF, which is designed to move inversely to natural gas prices. As of 2:16 PM ET, the ETF is trading at $40.58, marking an 18.12% decrease from its previous close.