Natural gas can be as volatile as the energy commodity is combustible in its raw form. The nearby U.S. natural gas futures for delivery in the Henry Hub in Erath, Louisiana, fell over 40% in 2023, settling at around the $2.50 per MMBtu level. While the 2023/2024 peak demand season began in late November, natural gas prices did not experience a seasonal rally until early January. The U.S. Natural Gas Fund (UNG) moves higher and lower with volatile U.S. natural gas futures. The Bloomberg Ultra Natural Gas 2X ETF (BOIL) magnifies price action on the upside but also falls more than the natural gas price during bearish periods. The Bloomberg Ultrashort Natural Gas -2X ETF (KOLD) is the converse product, magnifying downside price action while quickly shedding value when U.S. natural gas futures rise.
Inventories have been bearish
