- The Proshares Natural Gas ETF (BOIL) stock rallied 16.9% today.
- The rally was driven by expected higher gas prices as;
- The Freeport gas terminal remains closed for longer.
The ProShares Ultra Bloomberg Natural Gas (NYSEARCA: BOIL) stock price rallied 16.9% and was headed higher at writing as investors reacted to news that the Freeport liquefied natural gas (LNG) gas export terminal will remain closed for longer.
The port was expected to resume exports in September after it was closed on June 8, 2022, following a blast. The pipeline safety regulator was expected to approve plans to resume operations in September, but this is now unlikely to happen.
The Freeport terminal is the second-largest gas export terminal in the United States and the seventh-largest globally. As a result, many now expect more natural gas to remain in the country, which should lower utility prices over time, while prices in other parts of the world remain high.
Other countries that rely on US exports are likely to suffer as supply from the country will be reduced over the coming months. The situation in Europe is likely to get more precarious after suspending the Russian supplies.
Many experts warned that the high energy prices would stay around for longer before today’s developments. Consumers will have to continue dealing with high energy prices, which have affected the prices of other commodities since energy is a crucial commodity that affects everything else.
However, oil prices have not followed the same trend as the West Texas Intermediate (WTI) was trading down at the time of writing.
The Freeport terminal has an export capacity of slightly over 2 billion cubic feet of natural gas daily, which will now be stuck in the US and will have to find local customers such as gas distributors and electricity companies.
*This is not investment advice. Always do your due diligence before making investment decisions.
BOIL stock price.
The BOIL stock price surged 19.93% to trade at $57.09, rising from Friday’s closing price of $47.60.