Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
A chimney from the Linden Cogeneration Plant is seen in Linden, New Jersey.
Kena Betancur See Press | Corbis News | Getty Images
Natural gas futures prices rose on Monday, hitting a new 52-week high after reports of a colder-than-usual temperature outlook for January.
February natural gas futures rose around 15% during the session after an updated outlook from The Weather Co. and Atmospheric G2 published on Sunday showed that the temperature forecast for next month is expected to be colder than average in the Eastspecifically from Florida to Maine, as well as some parts of the Great Lakes.
The West, however, is expected to see temperatures come in milder than average, according to the report. In particular, the “Four Corners” region – the area of the United States that consists of the southwest corner of Colorado, the southeast corner of Utah, the northeast corner of Arizona and the ‘northwestern corner of New Mexico – is expected to be above average.
The report also said cooler temperatures in the East could peak in the middle of the month, likely to be “much further below average” when compared to the full month forecast for the East of the United States. The second half of January.
In a separate report, AccuWeather meteorologists said colder air could establish a “storm form”, with areas seeing “substantial snow and ice” for a significant portion of the first half of the month. They added that the drop will begin in the middle and latter part of next week.
John Kilduff of Again Capital said Monday on CNBC “Squawk on the Street” that the “freeze offs” of natural gas could be, that is, disruptions in the flows of natural gas production.
“Let’s talk [about] The sizzling polar vortex weather, which caused this natural gas spike this morning,” said the firm’s co-founder.
Earlier in the session, February futures prices advanced as much as 20% and reached a high of $4,201 per thousand cubic feet. This marks its highest level since January 4, 2023, when prices traded up to $4,219 per thousand cubic feet.
The move in February futures comes as natural gas – which is used for home heating – has seen big gains of late. Commodity prices have jumped nearly 9% in the past week and about 58% this year.
Meanwhile, Brent crude futures rose 30 cents to $74.39 a barrel, while US West Texas Intermediate crude gained 79 cents to $71.16 a barrel.
