U.S. natural gas futures spiked nearly 7% by late morning, hitting their highest level in almost three years as traders braced for another blast of deep cold across the eastern U.S. through the midpoint of the month.
From the $2.70 per MMBtu low in August to the $5.41 per MMBtu high around lunchtime in New York, prices have doubled and are now on track for their highest level since December 2022.
Colder-than-normal forecasts for the Lower 48 have pushed the quarterly gain to 62.5%, marking the strongest quarterly increase since the fourth quarter of 2005.
What sparked today's price spike, according to Bloomberg:
Atmospheric G2 warns of significantly colder-than-normal temperatures across the eastern U.S. Dec. 10–14, with the pattern likely persisting into the following week.
NOAA's 6–10 day outlook shows broad below-average temperatures across the East.
Forecasted Lower 48 average temperatures for the next two weeks will be well below the 30-year average.
As a result, heating demand soars...
Snow in the Mid-Atlantic today.
Related:
What meteorologists are saying:
Please "Make Global Warming Great Again"...
Loading recommendations...