Natural-gas prices are shooting higher today on forecasts for a sharp turn colder next week.
Market reacts as chilly weather foretasted in EU
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Natural-gas prices are shooting higher today on forecasts for a sharp turn colder next week. pic.twitter.com/tGq59Q88rO
— The_Journalbiz (@the_journalbiz) November 7, 2022
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“Winter will start this weekend,” says EBW Analytics Group in a note to clients. The energy consultants expect daily heating demand to double between Thursday and Sunday as temperatures shift from unseasonably warm in the eastern U.S. to colder than normal across the entire country.
Futures for December delivery traded 11.2% higher at $7.12 per million British thermal units on Monday. That’s up more than 40% from two weeks ago, when balmy weather and record domestic prices depressed prices for the heating fuel.
However, Rystad Energy analyst Nikoline Bromander argued. “Europe has enough gas stored to survive this winter unless it gets very, very cold. But the continent is not out of the woods yet – with Russian flows continuing to decline, winter 2023 will be even tougher.”