Natural gas prices experienced a significant drop on January 17, 2025, as revised weather forecasts indicated milder conditions ahead, reducing the anticipated heating demand. The American weather model showed a substantial increase in heating degree days, leading to a warmer outlook and prompting traders to take profits after a recent surge in prices. This shift in weather expectations has created uncertainty in the market, especially as the U.S. braces for what could be one of the coldest winters in recent years. Despite the initial spike in natural gas prices due to colder weather predictions, the market's reaction to the updated forecasts has been swift, with futures falling sharply.
The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) rose to $31.17, marking a 10.85% increase as of 10:00 AM ET on January 17th.