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Natural gas demand is rising as winter storms and data centers tighten supply. These three energy trades could benefit from cold-weather volatility

Natural gas is the most volatile energy commodity trading on the CME’s NYMEX division. As the natural gas futures market enters the peak demand season, the bullish trend since March 2024 is likely to continue.

In June 2024, nearby NYMEX natural gas futures prices traded in a $2.573 to $3.159 per MMBtu range. So far, in June 2025, the trading range has been between $3.453 and $4.102 per MMBtu. Natural gas prices are elevated going into the summer cooling season.

U.S. Henry Hub natural gas futures price at the $3.55 per MMBtu level in May 2025 is over $1 higher than the level in May 2024. Natural gas is a volatile commodity that could surprise on the upside over the coming months.

Natural gas is on the rise, and these exchange-traded products can give investors an easy way to benefit, although all carry risks as well.

Natural gas prices have been surging from geopolitical, political and now artic weather hitting temperatures not seen in almost 30 years in the East Coast.

Natural gas inventories in the United States decline from November through March. The peak heating season increases the demand for the energy commodity. The beginning of the withdrawal season, when stockpiles fall at the beginning of the withdrawal season, U.S. natural gas prices tend to increase to seasonal highs.

Natural gas is one of the most volatile commodities traded on the futures exchange. The highly seasonal energy commodity is heading toward the peak demand season when inventories decline, but the price remains below the $3 per MMBtu level.

Nearby U.S. natural gas prices are flirting with the $2 per MMBtu level despite a record-hot summer, during which cooling demand has increased. Over the coming months, the market will shift to concerns over the peak heating season, when natural gas futures prices tend to reach highs.