Natural gas prices continue to soar, as February futures rise more than 4% to $3.588/MMBtu, the strongest for a most active contract in more than a year, boosted by forecasts for more frigid temperatures in parts of the U.S.
Forecasts for below-normal temperatures and elevated heating demand across the central U.S. early next month have sparked the market this week, analysts at TFS Energy say.
Analysts say expectations for an outsize drawdown in natural gas out of storage this week also have contributed to the gains, noting that supply already is 12% below the five-year average.
Earlier: WSJ: China LNG demand sucks gas out of global market, raising prices (Jan. 23)
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