US Natural Gas Futures Surge Amid Cold Weather

US natural gas futures have surged nearly 10%, reaching a five-week high due to reduced output and anticipated heating demand as cooler weather approaches. The decline in production in the Lower 48 states has contributed to this rise, with output hitting a nine-month low, although high storage levels remain. Analysts suggest that colder weather forecasts and reduced renewable energy output are driving the increase in prices, as natural gas is expected to meet rising electricity needs. Despite this bullish outlook, spot prices are experiencing regional challenges, particularly at hubs like Waha. Market volatility is evident as speculators increase net short positions, indicating uncertainty. Overall, the dynamics in natural gas pricing reflect broader trends in energy use and market sentiment amidst seasonal shifts.