Natural gas prices jumped Tuesday as the US braced for a spike in heating demand ahead of a cold front this week.
Prices rose more than 17%, or roughly 46 cents, to $3.16 per million British thermal units by about 1:30 p.m. ET – setting natural gas futures on track for its best day in four years.
The futures contract for delivery of natural gas in February 2026 on the New York Mercantile Exchange also jumped over 23% to $3.83.
Demand for natural gas – which is primarily used for heating and electricity – is expected to spike this week as New York and the rest of the country are hit with its coldest air so far this winter.
In the New York City area, temperature highs were in the 20s and lows were in the teens with the potential for snowfall over the weekend.
That came amid public pushback against Con Edison’s recent proposal to raise electricity prices by more than 12% over three years. Natural gas prices would be raised 10% by 2028 — drawing anger from local leaders in New York City and Westchester.
A winter storm was expected to bring heavy snow, thick sleet, freezing rains and ice to the southern Rockies, the Plains and the South by Friday, moving over toward the East Coast through the weekend, according to the National Weather Service.
“Frigid weather is set to reshape the near-term natural gas outlook as Arctic air masses flash across the eastern US and the huge weather demand gain over the MLK weekend threatens severe market dislocation,” EBW Analytics said in a note Tuesday.
“The frigid weather pivot comes with speculator short positions at a 14-month high — suggesting further bullish risks as shorts are forced to buy back gas,” the group continued.
“Volatility will stay high, however – and any weather model warming into mid-February could allow a near term price spike to eventually soften.”
