FX.co ★ US Natgas Prices Extend Record Rally

U.S. natural gas futures climbed above $5.15 per MMBtu on Friday, rebounding from an earlier decline of over 3%, as the market braces for an unprecedented winter storm. This week's prices are poised for their largest weekly increase on record, having risen more than 65% since Monday. This surge is primarily fueled by forecasts predicting widespread below-average temperatures across much of the country. The intense cold, particularly in the southern regions where gas is produced, has heightened concerns about the potential for ice to form in pipelines, possibly leading to disruptions in production and exports. Recent storage data indicates that inventories fell by 120 billion cubic feet to 3.065 trillion cubic feet in the past week. This draw was larger than anticipated, although stockpiles remain approximately 6.1% above the five-year average. Analysts anticipate the forthcoming report will show an even more significant withdrawal, as the frigid weather intensifies heating demand and further strains available supply.