Natural gas prices surge as early winter blast boosts heating needs
With colder air spreading across key regions, rising heating needs are driving natural gas prices higher and increasing concerns about energy costs this winter.
With colder air spreading across key regions, rising heating needs are driving natural gas prices higher and increasing concerns about energy costs this winter. AccuWeather’s Anna Azallion explains.
Cold weather fueled by the recent shift in the polar vortex is helping drive demand for natural gas, with prices recently soaring to their highest levels in three years.
The U.S. Energy Information Administration (EIA) recently updated its winter outlook, forecasting an average natural gas price of nearly $4.30 per million British thermal units (MMBtu) this season, almost 40 cents higher than its initial outlook released in November.
CNN reports that natural gas futures have spiked 39% since September, hitting their highest level since 2022 earlier this week, before pulling back slightly.
In this photo illustration a pot sits on flames burning on a natural gas burning stove on January 12, 2023 in North Haledon, New Jersey. (Image credit: Michael Bocchieri/Getty Images)
The EIA cited “colder-than-expected” weather in December as a key driver of increased heating demand. Rising production may help moderate natural gas prices early next year, with the agency projecting an average near $4 per MMBtu in the first quarter.
Households that rely on natural gas for heating are forecast to see a 3% increase in costs this winter, according to the EIA.
In October, AccuWeather long-range forecasters highlighted the potential for higher energy bills this winter, especially in December, due to early surges in Arctic air.
Heating demand is expected to remain elevated through December due to multiple rounds of winter storms tracking across the U.S., following the recent polar vortex that brought dangerous cold to millions.
AccuWeather meteorologists are forecasting the first snowfall of the season later this week for major cities in the Northeast, including Boston, New York and Philadelphia.
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