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Natural Gas Futures Soar More Than 45% in Two Days as Arctic Front Grips U.S.

A displaced polar vortex is forcing a rapid reprice driven by short covering alongside expectations of heavy storage draws.

Overview

  • Front‑month Henry Hub prices climbed from about $3.40 to above $4.70 per MMBtu by Wednesday, putting contracts on pace for the biggest weekly gain in more than three decades.
  • Forecasters expect 10–14 days of Arctic air with life‑threatening wind chills, subzero conditions across the Upper Midwest, and freezing temperatures reaching into Florida.
  • Analysts report speculator short positions at a 14‑month high, fueling forced buying and volatility as traders brace for sizable seasonal withdrawals from U.S. inventories.
  • The deep freeze threatens production freeze‑offs in vulnerable areas such as Texas, raising the risk of temporary supply disruptions and stress on power systems.
  • Cold weather in Europe and Asia is boosting overseas demand and tightening LNG markets, while gas‑linked ETFs and producer shares log heavy gains.