Colder weather increases U.S. gas demand

After the worst three-day drop in 10 months, natural gas futures in the U.S. are stabilizing. On the other hand, spot prices in the west of the country are showing a sharp rise due to a potential increase in heating demand because of the colder weather.

Weather forecasters are predicting a severe cold across much of the U.S. through Sunday. Temperatures in the Middle West and East are expected to be cooler than previously expected.

On Wednesday, U.S. gas production grew by 2.9% over year-ago levels. In one day, 99.7 billion cubic feet of gas were produced, but that value is still below recent highs above 101 billion cubic feet per day.

Gelber & Associates reports the start of freezing temperatures and the expectations of reducing gas reserves in the coming days due to the emergence of most of the coldest conditions in the South - in Texas, the Gulf Coast states and the southeast regions of the United States.

Total demand for gas in the U.S. this year is 6.8% higher than last year. It is estimated at 105.9 billion cubic feet.