- Natural gas futures in the US jumped Monday as colder weather in parts of the country strengthened demand prospects.
- The price for December natural gas contracts climbed as much as 12%, their highest since mid-September.
Natural gas futures on Monday soared to their highest point in more than a month, with investors placing bets on stronger demand as the weather turns colder around the US.
December natural gas futures contracts climbed as much as 12.8% to $7.22 per million British thermal units then trimmed the advance to 7.7% to $6.96 per MMBtu. The intraday gains pushed prices to their highest since mid-September.
Prices popped up with weather models indicating a turn to colder temperatures, according to Natural Gas Intelligence.
Temperatures were set to turn lower throughout the Northeast, according to the National Weather Service, after some areas including New York City and Massachusetts have been experiencing warmer-than-usual temperatures.
Heavy snow is expected to hit parts of the West, with "frigid" conditions projected for portions of Montana.
Investors have also been closely monitoring a return to service at the Freeport liquefied natural gas export plant in Texas. Freeport LNG had expected partial service to return by mid-November following an unexpected shutdown on June 8 caused by a pipeline explosion. Several vessels were lined up to pick up LNG from Freeport, Reuters said.
Natural gas futures surged during 2022 over a year ago after Russia's invasion of Ukraine in February strengthened demand for US exports.