Yuriy Ukazkin
⬤ Natural gas futures rallied hard as updated weather forecasts showed a powerful Arctic airmass heading toward the United States. Prices jumped nearly 28 percent during the session, pushing futures close to the $4.00 per MMBtu mark. The move puts natural gas on pace for the third-largest daily gain in history if current levels hold through the close.
⬤ The price chart shows an almost vertical climb, with strong bullish candles driving futures from around $3.60 straight up to roughly $3.98. The surge came after forecasts indicated that temperatures across the Northeast and Midwest could drop as much as 25 degrees Fahrenheit below seasonal averages. That kind of cold typically triggers a sharp jump in heating demand and tightens near-term supply.
Weather-driven price swings are a recurring feature of the natural gas market, but the speed and magnitude of this move stand out.
⬤ Extreme cold scenarios force quick repricing as traders react to potential pressure on storage levels and distribution networks. The current spike shows just how sensitive natural gas prices are to sudden shifts in temperature forecasts during peak winter demand.
⬤ This matters for energy markets because natural gas powers heating and electricity generation across the country. Sharp weather-driven moves can reshape market conditions fast and spike volatility. With prices approaching a historic daily gain, all eyes are now on temperature updates and whether the Arctic blast sticks around—because that'll decide if prices hold or keep climbing.
Yuriy Ukazkin
