Cold weather fueled by the recent shift in the polar vortex is helping drive demand for natural gas, with prices recently soaring to their highest levels in three years.
The U.S. Energy Information Administration (EIA) recently updated its winter outlook, forecasting an average natural gas price of nearly $4.30 per million British thermal units (MMBtu) this season, almost 40 cents higher than its initial outlook released in November.
CNN reports that natural gas futures have spiked 39 since September, hitting their highest level since 2022 earlier this week, before pulling back slightly.
The EIA cited "colder-than-expected" weather in December as a key driver of increased heating demand. Rising production may help moderate natural gas prices early next year, with the agency projecting an average near $4 per MMBtu in the first quarter.
In October, AccuWeather long-range forecasters highlighted the potential for higher energy bills this winter, especially in December, due to early surges in Arctic air.
