Natural Gas Prices Surge 60% Amid Arctic Cold Wave, Retail Impact Delayed
U.S. natural gas futures skyrocketed 60% in two days, marking the largest recorded gain, as an Arctic cold front intensifies heating demand. Henry Hub contracts surged 29% Wednesday alone, with nearly half of American households reliant on natural gas for winter heating.
Forecasts predict sub-zero temperatures will persist through January, stretching from North Dakota to south-central Texas. A winter storm system is expected to bring heavy snow and ice from New Mexico to the East Coast this weekend.
Despite the wholesale price spike, consumers won't see immediate utility bill increases due to the typical 3-6 month lag in retail price adjustments. The global nature of the cold snap suggests sustained pressure on energy markets.