U.S. natural gas futures have surged due to a combination of increased flows to liquefied natural gas (LNG) export plants and forecasts for colder weather, which is expected to boost heating demand over the next two weeks. Meteorologists predict a shift from near-normal to colder-than-usual temperatures in the U.S. from January 6-17, driving up heating needs. Additionally, the expiration of a deal that allowed Russia to pipe gas to Europe across Ukraine has led to a rise in European gas prices, further supporting U.S. futures. The amount of gas flowing to the eight major U.S. LNG export plants has also increased, contributing to the upward pressure on natural gas prices.
The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) fell to $40.31, down 5.69% as of 12:16 PM ET on January 2nd.