Natgas Spikes On The Return Of Old Man Winter, Powerful Snow Storm Expected Over Weekend

Natgas futures soared 3% following a new report that details much colder temperatures are on the way for much of the US starting next week.

Data provider Refinitiv estimates that heating degree days (HDDs) are expected to start rising next Monday and continue above trend through mid-January. This means colder weather is expected to arrive next week, driving energy demand to heat businesses and homes in the US-Lower 48.

Northeast HDD shows energy demand will start moving higher around New Years.

Southeast HDD shows colder weather will arrive early next week, forcing homes and businesses to crank up the heaters.

Central HDD shows colder weather will force many to turn up their heaters this weekend.

Midwest HDD will surge around New Year’s Eve.

Southwest HDD will surge this weekend.

And Western HDD will dive below trend into the new year.

A 48-day HDD forecast for the US-Lower 48 shows energy demand as a whole will increase to above trend for much of January.

“Natural gas is higher this morning on weather forecast patterns for middle January,” said Robert DiDona of Energy Ventures Analysis, adding that the weather report caused a short-cover.

DiDona said thin trading over a holiday week coupled with a bullish weather outlook sparked volatility late this week.

Temperatures across major Northeast metro areas are expected to move lower through the weekend into next week.