Investment thesis
Since our last publication on the ProShares Ultra Bloomberg Natural Gas (BOIL), the ETF lost 27.3% to $12.48 per share. While our view was cautious, given that we adopted a neutral to slightly bearish recommendation, the pullback seen in the last weeks is mostly due to a deterioration of U.S. natural gas fundamentals and particularly to a declining demand.
Indeed, this summer, demand remained sustained, thanks to a supportive weather pattern coupled with mounting natural gas burns in the power sector.
Yet, these dynamics have disappeared and the autumn season start