- U.S. natural gas futures have soared on predictions of an Arctic blast and polar vortex expected to hit the eastern United States in mid-January.
- The frigid weather is expected to continue for several weeks, leading to a significant increase in heating demand.
- Private weather forecaster BAMWX warned of “historic cold” and “dangerous” conditions, prompting traders to push NatGas futures prices higher.
U.S. natural gas futures soared Monday morning as weather models continue to show widespread damage to the Lower 48 is possible in the coming days. The arctic air mass is expected to remain in the eastern half of the United States for several weeks, bringing wintry precipitation to some parts of the country. Traders appear to be reacting to the latest heating degree-day forecasts, which suggest a significant surge in heating demand in the coming weeks.
In early Monday trading, NatGas futures for February delivery soared as much as 12.3% to $3.80 per million British thermal units (MMBtu). Technologists note that prices have broken through the $3 resistance level, which is key this heating season, after hitting a multi-year low after soaring to nearly $10 in mid-2022.
On Friday, a private weather forecaster BAMWX I told the clientall systems will stop” An arctic blast, or “polar vortex,” could sweep into the eastern half of the United States by the second week of January or mid-month.
By Sunday, BAMWX meteorologists noted: “Now we're starting to think about historic cold.”
“It's very cold in the middle of winter.” BAMX said.
BAMWX meteorologists explain the upcoming developments:
- Cold weather arrives on January 1st
- Extreme cold accompanied by storms until ~7th
- Dangerous cold 8-12 days
- A larger storm will occur in mid-month.
- Pattern changed in late January
Old Man Winter has arrived.
Posted by: Zerohedge.com
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