US natural gas prices rise amid cold weather and export boost

US natural gas futures surged to $3.6/MMBtu, recovering from a sharp 8% drop on Friday, driven by forecasts of extreme cold sweeping across the central and eastern US this month.

US natural gas prices rise amid cold weather and export boost

Temperatures are expected to dip as much as 20°F below normal. Ice storms and heavy snow will likely disrupt power lines, transportation, and travel, particularly in the Ohio Valley and Missouri. The country is bracing for its coldest January since 2011, pushing up natural gas and diesel prices. While the severe weather is expected to cause significant disruptions, it is not anticipated to rival the destructive storm 2021. Additionally, natural gas flows to US LNG export plants are expected to increase further, especially with the conclusion of a key Russia-Ukraine pipeline deal, which could alter global energy supply dynamics.

Export surge and winter weather to drive up US energy prices

This uptick in export activity and the expected winter weather will likely continue putting upward pressure on US energy prices in the coming weeks.