US natural gas contracts jump 11% due to frost


US natural gas contracts jump 11% due to frost


US natural gas contracts jump 11% on expectations of cooler weather and an increase in demand

US natural gas futures jumped more than 11 percent on Monday to a two-month high, as the US Northeast region was hit by a severe winter snowstorm.

Expectations are for the continuation of a cooler wave and an increase in heating demand over the next two weeks.

Gas contracts rose to the nearest maturity on the New York Mercantile Exchange 11.5 percent to $ 2.846 per million British thermal units, heading towards the highest closing level since December 1 and the largest one-day gain in terms of percentage since September.

Refinitiv forecasts indicate that the average demand for gas in the United States, including exports, will rise from 128.4 billion cubic feet per day this week to 138.1 billion feet next week as the cold wave continues.

Source: Reuters


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