U.S. natural gas prices soared, potentially marking the largest single-day gain in over two years, as traders prepared for cold weather in the U.S. and Europe. West Texas Intermediate crude for February delivery rose 0.8% to $71.20 per barrel. Brent crude for February increased by 0.6%, reaching $74.19 per barrel. January gasoline futures climbed 0.9% to $1.98 per gallon, while heating oil futures for January rose 2.4% to $2.30 per gallon.
February natural gas surged 18.7% to $4.03 per million British thermal units, aiming for the largest single-day gain since July 2022 and possibly closing at the highest level since January 2023. According to Jones Trading's Chief Market Strategist, Mike O'Rourke, the spike in natural gas prices pushed crude oil prices higher. The rise is attributed to expectations of lower temperatures in the U.S. and Europe, and the impending expiration of an agreement allowing Russian liquefied natural gas to transit through Ukraine to Europe. Temperatures in Germany, France, and the UK are expected to drop below freezing, while the U.S. braces for a polar vortex.
