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The chimney of the Linden Cogeneration Plant is seen in Linden, New Jersey.
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Natural gas futures rose to a new 52-week high on Monday after reports of cooler-than-normal January temperatures.
February natural gas futures rose more than 15% during the session after updated forecasts from The Weather Co. and Atmospheric G2 released on Sunday showed that the temperature forecast for the next month is as follows the east is expected to be colder than averageparticularly from Florida to Maine, as well as parts of the Great Lakes.
However, temperatures are expected to be below average in the West, the report said. It should be noted that the “Four Corners” region—the territory of the United States consisting of the southwest corner of Colorado, the southeast corner of Utah, the northeast corner of Arizona, and the northwest corner of New Mexico—is expected to it will be the highest for the average.
The report also said cooler temperatures in the east could peak by the middle of the month, likely to be “well below average” compared to the full month forecast for the eastern US. However, it is still unclear how the temperature will be maintained in the second half of January.
In a separate report, AccuWeather meteorologists said colder air could create a “stormy pattern” with areas seeing “significant snow and ice” for much of the first half of the month. They added that the decline will begin in the middle and second half of next week.
Again Capital’s John Kilduff said Monday on CNBC “Scream in the Street” that a natural gas “freeze” could occur, meaning disruptions in natural gas production.
“We’re talking (about) the stunning polar vortex weather that caused this natural gas surge this morning,” said the firm’s founding partner.
Earlier in the session, February futures prices rose 20% to a high of $4.201 per thousand cubic feet. This is the highest level since January 4, 2023, when prices reached $4.219 per thousand cubic feet.
The move to February futures is due to the fact that natural gas, which is used to heat homes, has recently increased significantly. Commodity prices have jumped nearly 9% in the past week and about 58% this year.
Meanwhile, Brent oil futures rose 30 cents to $74.39 a barrel, while US West Texas Intermediate oil rose by 71 cents to 71.10 dollars per barrel.
