Company: EUO
Filing Date: 2025-03-27
Form Type: 424B3
Source: 0001193125-25-065644
Chunk: 49

Company: ProShares Trust II
Filing Date: 2025-03-27
Form: 424B3
Chunk 49
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 thoroughly reported as information regarding the U.S. or the U.S. dollar. Russia’s Invasion of Ukraine, the Israel-Hamas Conflict and the Possible Expansion of Conflict in Surrounding Areas, Could Have a Severe Adverse Effect on Certain Commodities Markets, Particularly Natural Gas Markets Ongoing geopolitical events, such as Russia’s invasion of Ukraine that started in February 2022, the Israel-Hamas conflict, and the Houthi movement’s attacks on marine vessels in the Red Sea have had, and may continue to have, an impact on certain commodities markets, particularly the market for natural gas, commodity futures markets, including futures on natural gas, and the prices of the Natural Gas Funds. The Russian invasion of Ukraine initially caused a significant disruption to Russia’s energy exports when large oil companies announced that they would cease operations in Russia and traders boycotted Russian oil. On March 8, 2022, the United States announced that it would ban the import of Russian oil, liquified natural gas, and coal. Despite a price surge following the start of the Russian invasion of Ukraine, as of the date of this prospectus natural gas prices are currently below the level they had prior to the start of the invasion. Generally, the price of the Natural Gas Funds corresponds to U.S. market price movements of the underlying futures contracts associated with the Bloomberg Natural Gas Subindex SM . Many complex factors affect the natural gas futures markets, including seasonality, the COVID-19 pandemic, Russia’s invasion of Ukraine, the Israel-Hamas conflict and the ensuing conflict, and overall supply and demand, among others. The average daily trading volume for natural gas futures did not experience any severe spikes or decreases in 2023. A resolution to the war in Ukraine and/or the Israel-Hamas conflict may impact the markets for certain commodities, such as crude oil and natural gas, and may have collateral impacts, such as increased volatility, and cause disruptions to the availability of certain commodities, the prices of commodities and futures contracts, and the supply chain globally. The longer-term impact on commodities and futures contract prices, including the spot price of natural gas and the price of natural gas futures is difficult to predict and depends on a number of factors that may have a negative impact on the Natural Gas Funds in the future. The natural gas front month future settled at a low of under $2 in the spring of 2023 as natural gas hit multi-year lows at this time. The impact of Russia’s invasion of Ukraine on other commodities markets, such as the gold and silver markets,