Natural gas futures are experiencing a significant decline on January 3, 2025, as revised weather forecasts predict less frigid conditions than previously anticipated. The updated outlook has removed several heating degree days from earlier forecasts, leading to a decrease in expected demand. As a result, February natural gas futures dropped by 17.2 cents to $3.488/MMBtu as of 8:40 AM ET. Although the overnight data is not entirely warm and bearish, it is less cold than prior runs, which has impacted market sentiment. This shift in weather expectations has contributed to the downward pressure on natural gas prices.
The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) is up 7.57% in pre-market hours on Friday, January 3, reaching $45.32 as of 9:00 AM ET.