Natural gas markets are experiencing heightened volatility on January 23, 2025, as traders anticipate a significant storage withdrawal report from the U.S. Energy Information Administration (EIA). The market is reacting to an expected record draw of 270 billion cubic feet (Bcf) due to an arctic blast that has driven up heating demand. This has led to a complex supply-demand dynamic, with Texas freeze-offs constraining production while European LNG demand rises. Despite aggressive withdrawals, inventories maintain a surplus above the five-year average, acting as a price stabilizer. The February Nymex gas futures contract is hovering near $4.00/MMBtu, with traders eyeing a potential bullish breakout if technical resistance at $4.053 is breached.
The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) is trading at $30.42, reflecting a 2.50% decrease from the previous close.