40 år i branschen
185 800 kunder världen över
15 000 marknader

Natural gas boosted by cold weather forecasts

Natural gas has risen today amidst fears of another US cold snap and news of a record drop in stores of the heating fuel.

The recent bout of below-normal temperatures in the US has contributed to a huge decline in US supplies of natural gas. The Energy Information Administration (EIA) said today that gas held in storage fell by 287 billion cubic feet last week, the biggest drop on record. Expectations had been for an even bigger drop, though, which helped knock prices back down from the day’s highs.

By mid-afternoon in New York, natural gas futures for February were up 1.41% at $4.378 per million BTU, having earlier reached as high as $45.06, the highest level in more than three weeks.

The price is being supported by signs that more cold weather could be on its way. Current mild conditions are expected to give way to another blast from the polar vortex, with lows forecast for next Tuesday.

The US National Weather Service warns blizzard conditions will affect parts of the Upper Midwest today, and colder air will be moving down over the weekend from Canada. While not as severe as the recent frigid weather, the potential is there to boost fuel consumption.

Nearly half of US household are heated by natural gas according to the EIA.

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.