Natural gas prices are experiencing a notable decline on January 3, 2025, driven by a combination of factors that are impacting the market. Despite forecasts for colder weather and increased heating demand in the coming weeks, natural gas futures have dropped due to a recent surge in supply and a slight decline in LNG feedgas. The U.S. Energy Information Administration's report on inventory levels is anticipated to show a significant drawdown, yet the market remains pressured by the current oversupply and the potential for infrastructure challenges due to extreme cold. Analysts are closely monitoring these developments as they unfold.
The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) is up 7.76% in pre-market hours on Friday, January 3, reaching $45.40 as of 7:15 AM ET.