Severe Cold Alert Drives NatGas Futures Upward, Highlights BOIL ETF with 65% Weekly Increase

Written by Emily J. Thompson, Senior Investment Analyst

Source: stocktwits

Updated: 1d ago

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Source: stocktwits

Weather Forecast: A strong area of high pressure in western Canada is expected to bring a frigid Arctic air mass, resulting in dangerously low wind chills that may drop to minus 50 degrees Fahrenheit across the Northern Plains and into the Eastern U.S. by the weekend.
Natural Gas Prices: Natural gas futures (NG1) have surged, with an early 172% weightage, driven by increased demand for heating fuel due to the cold weather, pushing prices higher and attracting attention from retail traders.
Market Reactions: The ETF for natural gas (BOIL) saw an 8% increase in overnight trading, while the sentiment for retail traders has shifted to bullish territory, indicating a strong interest in natural gas investments amid rising prices.
Stock Performance: Shares of BOIL closed up 20% on Wednesday, contrasting with a 19.6% decline in KOLD stock, as traders anticipate warmer weather in February, influencing their trading strategies.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.