WDS 2026, page-16

US natural gas futures surged over 17% to $3.65/MMBtu, rebounding from a 13-week low of $3.10 last week, as an intensifying Arctic outbreak grips the United States. A sudden transition from a mild outlook to a severe cold snap has forced a rapid market correction, as traders price in significantly higher fuel consumption to combat the prolonged Arctic blast. Forecasts showed frigid temperatures across the Midwest and East Coast from late January into early February. With an upper-level low centered over Hudson Bay, Arctic air is spilling south, pushing temperatures 15°F to 30°F below seasonal averages. Over 200 million Americans face below-freezing conditions, with wind chills in states like Minnesota reaching -30°F. This extreme cold is expected to drive a massive spike in residential and commercial heating demand, as well as increased electricity generation needs. Meanwhile, production remains elevated, while LNG export flows are modestly lower.