Natural-gas futures soared more than 7% to a four-year high Wednesday on forecasts for another cold blast in the next two weeks.
Traders anticipate more U.S. heating-related demand just as natural-gas supplies have already been depleted by the severe winter.
Gas for March delivery rallied 37.1 cents, or 6.7%, to $5.9220 a million British thermal units Wednesday on the New York Mercantile Exchange. Prices are at their highest level since Jan. 25, 2010.
Just a week ago, weather forecasters were predicting a warming trend through the end of the month. But predictions began changing over the weekend, with a new cold front appearing next week and another “Polar Vortex”-style blast expected over much of the U.S. in early March.
The new forecasts call for “fierce and frigid” cold across the Midwest, the East Coast and even the Deep South, with two days of subzero temperatures in Chicago during the period, according to Commodity Weather Group. And the cold will last longer into the extended forecast than previously expected. Full Article http://on.wsj.com/1d01pKU