A chimney from the Linden Cogeneration Lodge is seen in Linden, New Jersey.
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Natural gas followings prices surged Monday, hitting a new 52-week high following reports of a colder-than-usual temperature outlook for January.
Organically grown gas February futures rose around 15% during the session after an updated outlook by The Weather Co. and Atmospheric G2 freed Sunday showed that the temperature forecast for next month is expected to be colder than average in the East, specifically from Florida to Maine as effectively as certain parts of the Great Lakes.
The West, however, is expected to see temperatures come in milder than average, concurring to the report. Notably, the “Four Corners” region – the area of the United States that consists of the southwestern corner of Colorado, southeastern corner of Utah, northeastern corner of Arizona and northwestern corner of New Mexico – is supposed to be the most above average.
The report also said that colder temperatures in the East could hit a peak by mid-month, meet being “much farther below average” when compared with the entire month’s forecast for the eastern U.S. That explained, it’s still unclear how temperatures will take hold in January’s second half.
In a separate report, AccuWeather meteorologists conveyed that the colder air could set up a “stormy pattern,” with areas seeing “substantial snow and ice” for a significant portion of the month’s leading half. They added that the drop will begin in the middle and latter part of next week.
John Kilduff of Again Splendid said Monday on CNBC’s “Squawk on the Street” that natural gas “freeze offs” could take place, intention disruptions in natural gas production flows.
“We are talking [about] bone-chilling polar vortex weather, which has caused this disarm in natural gas this morning,” the firm’s founding partner said.
Earlier in the session, February futures prices move onward as much as 20% and hit a high of $4.201 per thousand cubic feet. That marks its highest level since Jan. 4, 2023, when worths traded as high as $4.219 per thousand cubic feet.
The February futures move comes as natural gas – which is hand-me-down for home heating – has seen major gains as of late. Prices of the commodity have jumped nearly 9% in the lifestyle week and about 58% this year.
Meanwhile, Brent crude futures rose 30 cents to $74.39 a barrel, while U.S. West Texas Intervening crude gained 79 cents to $71.16 a barrel.