Natural Gas Prices Surge 24% on Forecasts of Severe Cold in January

Colder-than-average temperatures expected across the eastern U.S. drive natural gas futures to their highest levels in nearly two years.

Natural gas futures jumped as much as 24% on Monday, reaching $4.20 per million British thermal units, the highest price in almost two years.
Weather forecasts predict below-average temperatures across the East Coast and Midwest in January, with potential for snow and ice in the first half of the month.
Analysts attribute the price surge to increased heating demand, low U.S. gas inventories, and continued European reliance on U.S. liquefied natural gas due to sanctions on Russia.
The natural gas market has seen a 176% increase since its 2024 low in February, reflecting broader trends of rising energy prices this year.
The West is expected to experience milder-than-average temperatures, with the Four Corners region forecasted to have the warmest deviations.