Natural gas markets are experiencing heightened volatility as peak winter heating demand intersects with robust calls for U.S. LNG exports. Frigid weather conditions have slowed production, leading to dwindling storage supplies and driving spot prices higher. Analysts suggest that the physical market could maintain its upward momentum throughout January, as cold weather continues to bolster demand. However, the market remains unpredictable, with potential surprises that could alter the current trajectory. Meanwhile, the natural gas futures market has been oscillating, with the February contract fluctuating between gains and losses. The European weather model's colder forecast has added to the bullish sentiment, although weak LNG export demand may limit price gains.
The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) is trading at $32.67, reflecting a 3.57% decrease from the previous close.