Natural gas futures in New York surged by as much as 14% on the last trading day of the week, on the back of the impact of the winter storm on the northeast region.
- The surge comes as demand for heating and power plant furl is expected to climb with a winter storm hovering over the East Coast. As much as 18 inches of snow is predicted in Long Island and Boston, and 10 inches in New York City.
- Analysts believe there is currently “intense” demand, in line with historical data that indicates that supplies move higher with colder weather conditions. Forecast for heating is demand is also expected to increase further.
- The climb comes after a 72% growth in the contracts for February on Thursday, indicating a short squeeze. Natural gas for March delivery was up 9.5% to $4.688 per million British thermal units at 10;15 a.m.
Source: Bloomberg
