Natural Gas Prices Surge Amid Polar Vortex Watch

Natural gas prices surged on Sunday night, driven by concerns over an impending polar vortex. February natural gas futures jumped 7%, reaching $4.25 per million British thermal units (mmbtu), while the March contract rose by approximately 4% to $3.54/mmbtu.

The price spike is attributed to forecasts of a fresh Arctic blast expected to engulf much of the eastern half of the United States through the middle of next week. While milder temperatures may return briefly by week’s end, a more significant shot of Arctic air is anticipated next weekend, extending into the following week. Meteorologists are warning that January is shaping up to be colder than average, with the week of January 20th expected to be particularly frigid. Ben Noll, a meteorologist for the Washington Post, confirmed that the nation is “officially on polar vortex watch.”

This development follows a period of record LNG feedgas levels, indicating strong demand for natural gas. The potential for extreme cold has intensified market reactions, as energy consumption typically spikes during such weather events