Natural gas markets are experiencing significant volatility on December 31, 2024, driven by geopolitical tensions and weather forecasts. The expiration of the Russia-Ukraine transit deal has heightened concerns over European gas supply, prompting a shift towards U.S. LNG. This shift is compounded by an Arctic blast forecasted to hit the northeastern U.S., increasing domestic demand. These factors have led to a surge in U.S. natural gas prices, which rose over 20% on Monday, reaching levels not seen since December 2022. The European market is also reacting, with natural gas prices consolidating gains amid the cold snap.
The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) is up 5.97% in pre-market hours on Tuesday, December 31, reaching $42.77 as of 8:46 AM ET.