US Nat Gas Buoyed By Cold Weather

A cold weather snap across the US has sent natural gas prices surging over 10% Monday.

• Bitter winter weather has slammed the US but more unusually the West Coast this month, driving up heating consumption in a region that normally sees its highest energy needs in the summer.
• Gas stocks on the Pacific Coast are low as the cold snap hits. As of Dec. 2, Pacific stocks stood at only 217 Bcf, which is more than 18% below year-earlier levels and nearly 24% below the five-year average, according to the EIA.
• Demand remains high for US LNG as Europe also faces its first cold snap this winter. The market awaits Freeport LNG’s return to the market, which will increase volumes available from the US Gulf. A number of vessels have been waiting outside Freeport expecting loadings in the short term.
• US Natgas JAN 23 up 10.7% at 6.91$/mmbtu.