## [# Natural Gas Surges 41%, Lifting UNG and BOIL](/sections/features/natural-gas-surges-41-lifting-ung-and-boil)
# Natural Gas Surges 41%, Lifting UNG and BOIL
A brutal cold snap sent U.S. natural gas prices up 41%, driving sharp gains in futures-based ETFs like UNG and leveraged BOIL.
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[By Sumit Roy ](/authors/sumit-roy)
Jan 26, 2026
Edited by: ETF.com Staff
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U.S. natural gas prices surged as much as 41% on Monday as a cold snap across the eastern half of the country boosted demand and knocked production offline. Industry estimates suggest that roughly 10% of U.S. natural gas output was temporarily curtailed as freezing temperatures disrupted wellhead operations and infrastructure in key producing regions.
Benchmark Henry Hub natural gas futures jumped as high as $7.44 per million British thermal units, the highest level since 2022. Prices are now more than double the roughly $3.12 per MMBtu they traded at less than two weeks ago.
Funds tied to natural gas rallied sharply alongside the move. The $564 million [**United States Natural Gas Fund (UNG)**](/ung) rose about 50% since Jan. 16, while the $541 million [**ProShares Ultra Bloomberg Natural Gas (BOIL)**](/boil), which provides 2x daily exposure, nearly doubled.
Despite the dramatic gains, neither fund has captured the full rise in spot natural gas prices.
Both UNG and BOIL track near-month natural gas futures and roll their positions forward as contracts approach expiration. The funds are currently holding March natural gas futures rather than the February contracts, which expire Wednesday.
While March futures also rose, their gains were smaller. March contracts are currently trading around $3.86 per MMBtu, representing a steep discount to February prices and highlighting the pronounced backwardation in the natural gas futures curve.
Contracts further out on the curve are trading at $4 per MMBtu or lower, suggesting that futures markets do not expect the current cold snap or production disruptions to have a lasting impact.
Fundamentals continue to point to ample supply. The Energy Information Administration reported last week that working natural gas inventories totaled 3,065 billion cubic feet, which is 177 Bcf (6%) above the five-year average and 141 Bcf (5%) higher than last year at this time.
Outside of the recent spike, performance for natural gas–linked ETFs has been poor. Over the past year, UNG is down 13%, while BOIL has fallen 45%. Over the past five years, UNG is down 62%, while BOIL has lost roughly 99% of its value.
The underperformance reflects persistent roll costs associated with futures-based exposure, volatility decay in the case of leveraged products like BOIL, and the broader struggle of U.S. natural gas prices amid abundant domestic supply.
The last sustained rally in U.S. natural gas occurred in 2021 and 2022, when the Russia–Ukraine war triggered a scramble for liquefied natural gas exports from the U.S. Futures prices peaked near $10 per MMBtu in 2022 before plunging to around $2 in 2023 and roughly $1.65 in 2024.
While sharp dislocations like this week’s spike can create short-term trading opportunities, natural gas has been a difficult asset for long-term investors to hold.
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[ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy)
Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including… [View Bio](/authors/sumit-roy)
Related Topics [Natural Gas](http://www.etf.com/topics/natural-gas)
[Energy](http://www.etf.com/topics/energy)