Natural gas markets are experiencing a pullback on December 31, 2024, as traders reassess the recent surge driven by weather forecasts predicting an Arctic blast across the United States. The February natural gas futures contract, which had surged past the $4/MMBtu mark on Monday, is now facing downward pressure as liquidity issues and technical indicators suggest a correction. The market's reaction to the anticipated cold snap, coupled with concerns over Russian gas supplies to Europe, had initially driven prices higher. However, the current sentiment is that the market may need to fill the gap created by Monday's rally, leading to a potential 5-6% decline in prices.
The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) rose to $42.19, up 4.54% as of 9:47 AM ET on December 31st.