FX.co ★ US Natural Gas Prices Rebound

U.S. natural gas futures climbed to approximately $3.50 per MMBtu on Monday, recovering from a recent low of $3.10, prompted by a colder weather forecast for late January. Predictions indicate that Arctic air masses will affect the East Coast and Midwest between January 26 and February 1. This shift in weather is anticipated to significantly increase heating and power generation demands. Consequently, PJM Interconnection and MISO have issued alerts to utilities to anticipate higher consumption levels early in the week. Concurrently, while production levels remain high and overall demand shows a slight uptick, LNG exports have decreased modestly, tempering some of the price pressures. The expected rise in domestic consumption, bolstered by advisories from grid operators, is a key factor driving price increases. Additionally, this cold front may lead to increased spot LNG purchases in Asia, enhancing global demand for natural gas.