The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) surged 13.05% to close at $47.63 on January 3, 2025, as U.S. natural gas futures plummeted by 8.20% to $3.36/MMBtu. The sharp decline in natural gas prices was primarily driven by a smaller-than-expected storage draw reported by the EIA, with U.S. utilities withdrawing only 116 billion cubic feet compared to the anticipated 127 bcf. This has contributed to a surplus in storage levels, exacerbating oversupply concerns. Additionally, revised weather forecasts predicting milder conditions in mid-January have further dampened demand expectations, despite near-record gas flows to U.S. LNG export plants. The bearish sentiment was intensified by natural gas futures breaking below key technical levels, risking further declines to $3.13 and potentially challenging October’s swing low.