Natural gas futures surged as much as 20% on Monday, reaching their highest levels in nearly a year, as updated weather forecasts predicted a colder-than-usual January across the U.S. East Coast. February contracts rose approximately 15% during the trading session, spurred by projections from The Weather Co. and Atmospheric G2, which indicated below-average temperatures stretching from Florida to Maine and parts of the Great Lakes region.
In contrast, the western United States is expected to experience milder-than-average temperatures, with the Four Corners region – covering parts of Colorado, Utah, Arizona, and New Mexico – forecasted to see temperatures above seasonal norms. Analysts noted that the most significant cold snaps in the East are likely to occur by mid-January, although uncertainty remains about the latter half of the month. AccuWeather meteorologists warned that the colder air mass could set the stage for a “stormy pattern” across affected areas, bringing heavy snow and ice during the first half of January.
Weather models suggest that temperature drops could begin as early as next week, leading to concerns about potential disruptions in natural gas production and supply chains. Earlier in Monday’s trading session, February futures peaked at $4.201 per thousand cubic feet, the highest level since January 4, 2023, when prices briefly touched $4.219. The surge comes amid broader gains for natural gas prices, which have climbed nearly 9% in the past week and approximately 58% year-to-date.
The rise in natural gas prices coincided with modest gains in crude oil. Brent crude futures added 30 cents to settle at $74.39 per barrel, while U.S. West Texas Intermediate crude rose 79 cents, closing at $71.16 per barrel. Market analysts are closely monitoring temperature patterns and energy demand as winter conditions intensify. Prolonged cold spells could drive further volatility in energy markets, particularly for natural gas, which remains a primary source of heating during the winter months. – By MENA Newswire News Desk.