Natural Gas Spikes As Markets Focus On First Major Snowfall Of Season

25 Oct 2022 , 02:42 PM

The US Natural Gas futures spiked today, rebounding impressively as traders eyed the weather updates and plenty of bargain buying emerged in the counter after recent tumble. The prices had tested eight month low of $4.75 per mmbtu before the current spike. Markets focused on reports stating that a storm moving through the western United States brought cold air and the first substantial snow of the season to many areas over the weekend. The freezing air was a sharp contrast to the record heat felt in many parts of the West last week. Across the Pacific Northwest, high temperatures dropped to the 40s and 50s over the weekend, and low temperatures dipped low enough to bring snow to many areas. This sudden change triggered a heavy rush to buy Natural Gas and the benchmark futures moved up above $5 per mmbtu comfortably. The counter currently trades at $5.86 per mmbtu, up around 1.86% on the day. Powered by Commodity Insights