Natural Gas Prices Are Volatile Amid Cold Weather and Red S
N atural gas prices in the U.S. have spiked this week as cold weather and new attacks on Red Sea shipping routes shook the market.
Futures for U.S. natural gas jumped 7% on Tuesday to the highest since November. They have risen more than 13% this year. Natural gas futures slipped back 2.5% in early trading Wednesday.
The prospect that cold blasts could both increase demand for gas and temporarily lock in some production have helped drive prices higher. Continued tumult in the Red Sea, one of the busiest shipping routes, also has added to worries about global supplies.
U.S. and U.K. warships shot down 18 drones fired by Houthi militants from Yemen overnight, repelling one of the biggest attacks since the rebels started targeting container shipping in November. The militants have protested against Israel’s war in Gaza.
The U.S. produces more natural gas than it consumes, selling the surplus into global markets. The Red Sea attacks could drive energy prices higher by making it more expensive to ship liquified natural gas to Europe and Asia.
Oil prices weren’t moving much on the latest news. West Texas Intermediate crude, the U.S. benchmark, slipped 0.5% on Wednesday to $71.90 a barrel. Brent crude, the international standard, fell by the same amount to $77.24 a barrel.