ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) is experiencing a notable rise, driven by a significant drop in natural gas prices. The underlying natural gas futures have plummeted by 7.36%, reflecting a bearish sentiment in the market. This decline is attributed to a combination of factors, including a milder weather forecast in key regions and a substantial decrease in European natural gas storage levels, which are down by 500 billion cubic feet compared to last year. These conditions have led to reduced demand expectations, further pressuring natural gas prices.
The current price of natural gas futures stands at $3.65, marking a significant decrease. As a result, KOLD, which inversely tracks the performance of natural gas, has surged to $42.99, up 6.53% as of 3:15 PM ET on December 31st.