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Polar Blast to Warm Up Natural Gas ETFs This Winter?
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Natural gas prices are likely to bask in the glow of winter chills this season. The likelihood of extreme cold gripping the United States, Asia, and parts of Europe is climbing. There are signs that the polar vortex could weaken this year, allowing chilly Arctic air to move southward, per Bloomberg, as quoted on Yahoo Finance.
Hence, for the United States, forecasters expect a winter that’s cooler than normal, and certainly colder than last year. Last year, the vortex didn’t break apart until March, muting the winter impact. In Asia, La Niña — a cooling of the Pacific Ocean’s surface — is raising the prospect of a colder-than-normal winter across much of China, the same Bloomberg article noted.
A severe cold snap would likely push up power and natural gas prices. United States Natural Gas Fund LP (UNG - Free Report) , which is down about 18% this year (as of Nov. 7, 2025), has added 4.5% over the past week.
Normally, Arctic Chills give life to this commodity every winter. The cold snap boosts electricity demand across the region, putting natural gas in focus. As almost 50% of Americans use natural gas for heating purposes, a withdrawal of natural gas supplies pushes up the commodity’s prices.
These kinds of events could heighten the risk of natural gas shortages, according to Morgan Stanley analyst Jack Lu, who warned that gas consumption and prices may spike in both wholesale and retail markets, per Bloomberg, as quoted on Yahoo Finance.
ETF Impact
Investors can also take a look at leveraged natural gas ETF ProShares Ultra Bloomberg Natural Gas (BOIL - Free Report) , which has tacked on about 8% gains (as of Nov. 7, 2025). Investors should note that natural gas equities, such as First Trust Natural Gas ETF (FCG - Free Report) , also gained 3.4% during the time frame.
What Lies Ahead for Natural Gas?
U.S. energy companies generated a record amount of natural gas during the third quarter as producers put a concerted effort to match with soaring domestic and export demand for the fuel, per Reuters.
Energy-intensive data centers and a boom in liquefied natural gas (LNG) exports are driving up U.S. gas requirements. Both supply and demand are set to hit record highs in 2025 and 2026, according to the U.S. Energy Information Administration (IEA), as quoted on Reuters.
The EIA expects dry natural gas production to increase from 103.2 billion cubic feet per day (bcfd) in 2024 to 107.1 bcfd in 2025 and 107.4 bcfd in 2026, up from a record 103.6 bcfd in 2023. The agency also projects total gas consumption — including exports — to grow from a record 111.5 bcfd in 2024 to 115.7 bcfd in 2025 and 117.7 bcfd in 2026, the Reuetrs article revealed.
It means that while the upcoming winter season will be good for natural gas investing, there may not be a continuation of price rise post-winter as the United States is powering gas production to meet higher AI-fueled demand.
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Polar Blast to Warm Up Natural Gas ETFs This Winter?
Natural gas prices are likely to bask in the glow of winter chills this season. The likelihood of extreme cold gripping the United States, Asia, and parts of Europe is climbing. There are signs that the polar vortex could weaken this year, allowing chilly Arctic air to move southward, per Bloomberg, as quoted on Yahoo Finance.
Hence, for the United States, forecasters expect a winter that’s cooler than normal, and certainly colder than last year. Last year, the vortex didn’t break apart until March, muting the winter impact. In Asia, La Niña — a cooling of the Pacific Ocean’s surface — is raising the prospect of a colder-than-normal winter across much of China, the same Bloomberg article noted.
A severe cold snap would likely push up power and natural gas prices. United States Natural Gas Fund LP (UNG - Free Report) , which is down about 18% this year (as of Nov. 7, 2025), has added 4.5% over the past week.
Normally, Arctic Chills give life to this commodity every winter. The cold snap boosts electricity demand across the region, putting natural gas in focus. As almost 50% of Americans use natural gas for heating purposes, a withdrawal of natural gas supplies pushes up the commodity’s prices.
These kinds of events could heighten the risk of natural gas shortages, according to Morgan Stanley analyst Jack Lu, who warned that gas consumption and prices may spike in both wholesale and retail markets, per Bloomberg, as quoted on Yahoo Finance.
ETF Impact
Investors can also take a look at leveraged natural gas ETF ProShares Ultra Bloomberg Natural Gas (BOIL - Free Report) , which has tacked on about 8% gains (as of Nov. 7, 2025). Investors should note that natural gas equities, such as First Trust Natural Gas ETF (FCG - Free Report) , also gained 3.4% during the time frame.
What Lies Ahead for Natural Gas?
U.S. energy companies generated a record amount of natural gas during the third quarter as producers put a concerted effort to match with soaring domestic and export demand for the fuel, per Reuters.
Energy-intensive data centers and a boom in liquefied natural gas (LNG) exports are driving up U.S. gas requirements. Both supply and demand are set to hit record highs in 2025 and 2026, according to the U.S. Energy Information Administration (IEA), as quoted on Reuters.
The EIA expects dry natural gas production to increase from 103.2 billion cubic feet per day (bcfd) in 2024 to 107.1 bcfd in 2025 and 107.4 bcfd in 2026, up from a record 103.6 bcfd in 2023. The agency also projects total gas consumption — including exports — to grow from a record 111.5 bcfd in 2024 to 115.7 bcfd in 2025 and 117.7 bcfd in 2026, the Reuetrs article revealed.
It means that while the upcoming winter season will be good for natural gas investing, there may not be a continuation of price rise post-winter as the United States is powering gas production to meet higher AI-fueled demand.