Hopefully not a sign for the new year, natural gas prices jumped more than 20% in the last month, ending the year with a price close to 50% higher than the start of 2024.
Some are relating the spike in price to concerns over lower-than-normal temperatures in January. The combination of a harsher winter, an increased demand, and the effect the weather could have on natural gas production has the potential to increase prices even more.
According to the National Weather Service, the country is slated to experience “below normal temperatures” and “above-normal precipitation” between January and March of this year. Last March, the U.S. Energy Information Administration (EIA) reported that ongoing winter storms had disrupted the country’s natural gas production by more than 15 billion cubic feet per day.
“Severe weather that affects one or more of the major U.S. natural gas-producing regions, such as the Appalachia, Permian, and Haynesville regions, can cause noticeable levels of interruption on a national scale,” stated the EIA report.
