Natural gas prices soared Tuesday, as heating demand is expected to spike due to a blast of frigid weather across the U.S.
Prices surged 25%, or 78 cents, to $3.89 per million British thermal units by 10 a.m. ET, putting natural gas futures
on pace for the best day in four years. Natural gas is used primarily for heating and electricity generation.
“Frigid weather is set to reshape the near-term natural gas outlook as Arctic air masses flash across the eastern US and the huge weather demand gain over the MLK weekend threatens severe market dislocation,” EBW Analytics told clients in a Tuesday note.
A big winter storm is forecast to dump heavy snow, sleet and treacherous freezing rain across the southern Rockies, the Plains and the South by Friday, according to the National Weather Service. The storm is then expected to shift toward the East Coast through the weekend.
