US Natgas Futures Scale 13-year Peak on Forecasts for Unusual Cold

“The acceleration higher is mainly due to some late winter weather, low storage levels, higher demand for LNG shown by exports and some industrial demand,” said Thomas Saal, senior vice president for energy at StoneX Financial Inc.

Reuters

U.S. natural gas futures jumped more than 10% to more than a 13-year-high on April 18, surging on the back of an unseasonable cold snap in the United States expected to bring snow and ice to northern states. 

The unusual weather has boosted natural gas futures at a time when that market is generally shifting to moving gas into storage in preparation for the next winter. In addition, steady demand in Europe for LNG has kept U.S. exports flowing at record levels.

Front-month gas futures were up 6.5% at $7.776 per MMBtu at 01:28 p.m. EDT (1728 GMT), having earlier hit their highest since September 2008. Last week the contract rose by 16%, the biggest one-week gain since 2020.

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