Natural Gas Prices Soar 60% in Two Days As Cold Wave Grips U.S.—What That Means For You

Core Insights - U.S. natural gas prices have surged significantly due to an Arctic cold front, with futures contracts based on Henry Hub rising 29% on Wednesday and approximately 60% for the week, marking the largest two-day gain on record [2][3][8] Group 1: Market Impact - Almost half of American households rely on natural gas for heating, leading to increased demand as sub-freezing temperatures are expected to persist [3] - The National Weather Service forecasts lower-than-average temperatures across the eastern U.S. for the next 6-10 days, contributing to heightened demand for natural gas [5][8] - Natural gas prices have also risen over 40% in Europe and the U.K. this month, with a cold spell in China affecting global liquefied natural gas (LNG) prices [5] Group 2: Consumer Effects - While heating expenses for U.S. consumers may increase in the short term due to higher demand, it typically takes months for these price changes to reflect in retail prices [6][8] - Retail prices are influenced not only by weather but also by demand for natural gas in electricity generation [7] Group 3: Company Performance - Shares of natural gas producers have seen significant gains, with EQT Corp. increasing by about 8.5% and Expand Energy rising nearly 10% over the past two days [7] - The U.S. Natural Gas Fund ETF (UNG) has surged 32% this week, closing at a six-week high [7]