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Natural Gas ETFs See Surge in Interest Recent Price Tumble\n\nNatural gas prices have been on a rollercoaster ride in recent months, with a 70% decline since September 2022. This hasn’t stopped investors from taking advantage of the dip, as natural gas exchange-traded funds (ETFs) have seen a surge in interest. On Thursday, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the VanEck Oil Services ETF (OIH) rose 3% and 2%, respectively. Meanwhile, two of the largest natural gas ETFs, the ProShares Ultra Bloomberg Natural Gas (BOIL) and the United States Natural Gas Fund LP (UNG), gained 12.6%% and 6.5%, respectively.\n\nThe recent drop in natural gas prices can be attributed to warm winters in the U.S. and Europe, leading to a decrease in demand. According to Bank of America analysts, prices have fallen 78% between September 2022 and February, and they predict that prices may remain low for the first half of 2023 before potentially rising again.\n\n The current slump, ETF investors are betting on a potential rebound. So far this year, BOIL and UNG have brought in $1.7 billion in investor funds, compared to the $275 million that exited the funds in the same period last year. This could be due to a buy the dip mentality, according to Todd Sohn, ETF strategist at New York-based Strategas Securities.\n\nFor those with a high risk tolerance, the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) and the ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) offer the opportunity to participate in this volatile market. These short-term, leveraged ETFs magnify the price action in nearby NYMEX natural gas futures contracts, with BOIL moving higher with the price and KOLD rising when the natural gas price declines.\n\n Natural gas prices have been as volatile as the fuel itself, with the nearby U.S. Futures price falling to a quarter-of-a-century low of $1.44 per MMBtu in June 2020 and rising to a high of $3.40 in June 2022. This reflects the seasonality of demand for the energy commodity, as the natural gas market is highly sensitive to changes in weather.\n\n Despite the current slump in natural gas prices, ETF investors are still showing interest in the market.

“Natural Gas ETFs See Surge in Interest Recent Price Tumble\n\nNatural gas prices have been on a rollercoaster ride in recent months, with a 70% decline since September 2022. This hasn’t stopped investors from taking advantage of the dip, as natural gas exchange-traded funds (ETFs) have seen a surge in interest. On Thursday, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the VanEck Oil Services ETF (OIH) rose 3% and 2%, respectively. Meanwhile, two of the largest natural gas ETFs, the ProShares Ultra Bloomberg Natural Gas (BOIL) and the United States Natural Gas Fund LP (UNG), gained 12.6%% and 6.5%, respectively.\n\nThe recent drop in natural gas prices can be attributed to warm winters in the U.S. and Europe, leading to a decrease in demand. According to Bank of America analysts, prices have fallen 78% between September 2022 and February, and they predict that prices may remain low for the first half of 2023 before potentially rising again.\n\n The current slump, ETF investors are betting on a potential rebound. So far this year, BOIL and UNG have brought in $1.7 billion in investor funds, compared to the $275 million that exited the funds in the same period last year. This could be due to a buy the dip mentality, according to Todd Sohn, ETF strategist at New York-based Strategas Securities.\n\nFor those with a high risk tolerance, the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) and the ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) offer the opportunity to participate in this volatile market. These short-term, leveraged ETFs magnify the price action in nearby NYMEX natural gas futures contracts, with BOIL moving higher with the price and KOLD rising when the natural gas price declines.\n\n Natural gas prices have been as volatile as the fuel itself, with the nearby U.S. Futures price falling to a quarter-of-a-century low of $1.44 per MMBtu in June 2020 and rising to a high of $3.40 in June 2022. This reflects the seasonality of demand for the energy commodity, as the natural gas market is highly sensitive to changes in weather.\n\n Despite the current slump in natural gas prices, ETF investors are still showing interest in the market.”$BOIL2023-12-14T14:22:11.718Z

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