The Commodities Feed: Natural gas and precious metals surge as weather conditions and geopolitical risks intensify

US Natural Gas Prices Surge Amid Severe Winter Weather

Natural gas prices in the United States have surged, with Henry Hub surpassing $6 per MMBtu and reaching levels not seen since the end of 2022. This sharp increase coincides with a powerful winter storm sweeping across the country, prompting emergency declarations in nearly half of all states.

The harsh weather is expected to drive up the need for heating and could threaten the stability of energy infrastructure. According to Bloomberg New Energy Finance (BNEF), natural gas output in the US has dropped by over 11 billion cubic feet per day in the past five days. While colder temperatures are likely to push heating demand higher and disrupt supply, industrial consumption may decline as some manufacturers scale back or temporarily stop operations in response to the conditions.