FX.co ★ US Natgas Prices Top $6/MMBtu

U.S. natural gas futures surged by 15%, surpassing $6.0 per MMBtu, marking their highest level since December 2022. This comes as part of a weather-induced rally that has soared over 90% since the previous week due to simultaneous impacts on supply and demand from severe cold. Notably, last week witnessed a nearly 70% surge — the most substantial weekly increase recorded since tracking began in 1990. The freezing conditions have taken offline approximately 10% of U.S. gas production and have significantly heightened heating and power demands. In January, average output in the Lower 48 states has dipped to roughly 106.9 billion cubic feet per day (bcfd), down from a record 109.7 bcfd in December. Daily production plummeted to a near two-year low of around 92.6 bcfd on Sunday. Operations in Texas and Louisiana were particularly impacted, with output dropping by more than 17 bcfd from mid-January peaks. The severe weather also put a strain on power grids and disrupted transportation, while gas flows to U.S. LNG export facilities reached their lowest point in a year. Market participants are now closely monitoring the duration of these production disruptions, as extended outages could drive prices even higher.