Forecasts for colder-than-normal weather conditions may have triggered a sharp upward rally in natural gas prices in the U.S. on Monday. Owing to early season demand across U.S., the November price of natural gas rose by more than by 8.1 cents to $3.242/MMBtu, and spot gas rose by 17 cents to $3.135/MMBtu at the start of the week.
With the early season unanticipated cold snap expected to persist throughout October, demand for natural gas is expected rise further. An inventory shortage could put upward pressure on prices if supply and demand become imbalanced as a result.
For now, the unexpected surge in demand saw many gas-oriented energy companies post strong gains early in the week, and these companies could bear watching as winter approaches. Range Resources Corporation (RRC, $17.65), Southwestern Energy Co. (SWN, $5.60) and Chesapeake Energy Corporation (CHK, $4.60) were some of the top gainers, rising by +5.3%, +4.9% and +3.4% respectively.