This Blown Out Natural Gas ETF Could Rip Higher In 2026 | BOIL

"When a leveraged natural gas ETF drops 53% in a year, most investors flee. But that brutal decline in ProShares Trust II ( NYSEARCA:BOIL) might set up a compelling contrarian play for 2026. This ETF delivers twice the daily performance of the Bloomberg Natural Gas Subindex, amplifying both pain and pleasure. After natural gas collapsed from over $5 per MMBtu in early December to around $3.66 by mid-month, BOIL was crushed. But the same leverage that destroyed it on the way down could launch it higher when fundamentals flip."

"The biggest catalyst for natural gas in 2026 is the massive wave of liquefied natural gas export capacity coming online that will transform U.S. natural gas from a regional commodity into a global one. Golden Pass LNG is targeting full capacity in 2026, while Venture Global's Plaquemines facility is ramping toward commercial operations. The International Energy Agency forecasts global LNG supply will surge 7% in 2026, the largest increase since 2019."

"That supply increase won't flood the market and crash prices. The IEA forecasts it will unlock massive price-sensitive demand in India and Southeast Asia that has been sidelined. After a soft 2025 where high spot prices deterred Asian buyers, lower international LNG prices in 2026 could create a higher floor for U.S. Henry Hub prices as export terminals pull more domestic gas toward international markets. Ukraine's confirmed halt of Russian gas transit on January 1, 2025 only tightens European supply further, positioning U.S. exports as the gap-filler."

BOIL, a 2x daily natural gas ETF, fell about 53% in a year after U.S. natural gas prices dropped from over $5 to roughly $3.66 per MMBtu. A major wave of U.S. LNG export capacity — including Golden Pass and Venture Global's Plaquemines — targets full operations in 2026, and the IEA projects global LNG supply rising about 7% that year. Increased exports and renewed Asian and European demand could raise the floor for Henry Hub prices by pulling more domestic gas toward international markets. BOIL's daily rebalancing and volatility decay amplify both potential gains and losses.

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