US natural gas prices surged by more than 6% for the second consecutive session, reaching $3.4/MMBtu, the highest level in a year.
US natural gas prices surge for second session
This rise was driven by forecasts of colder weather, which boosted expectations for increased heating demand and accelerated the anticipated start of the storage withdrawal season. Data from the EIA, due later in the day, is expected to show a slight increase in national storage, likely the final one of the season, as lower prices in the previous week led producers to reduce output.
Supply concerns arise
Meanwhile, the latest forecasts indicated colder-than-usual temperatures across the West Coast and much of the nation, excluding the Gulf Coast. Additionally, supply concerns in Europe as the year-end approaches caused LNG feed gas flows to reach a 10-month high, further tightening domestic supply.
