Natural Gas Posts 50% Weekly Surge as Severe Cold Snap Threatens US Infrastructure

US Natural Gas futures have staged a historic rally, exploding upwards by more than 50% in the last 48 hours to breach $5.50 per million British thermal units. The contract is on track for its largest single-week gain in 34 years, driven by a polar vortex forecast that threatens to freeze production across the American South.

• Key Pivot: US Natural Gas surges 50% in 48 hours.
• Price Action: Breached $5.50 per MMBtu.
• Global Impact: Europe gas futures up 18%.

Supply Shock Meets Demand Spike

The catalyst is a severe weather outlook from NOAA, predicting sub-freezing temperatures across two-thirds of the United States. This creates a double-edged sword for price action:

Global Contagion

The volatility is spilling over into international markets. With the US now the world's primary energy exporter, domestic production glitches have immediate global consequences.

• Europe: Gas futures have jumped 18% this week.
• Asia: Electricity prices in Japan reached three-month highs Wednesday, exposing the vulnerability of global energy security to US weather patterns.

If prices sustain these levels, the deflationary narrative championed by central bankers could be upended, reintroducing cost-push inflation pressure into the US manufacturing and utility sectors.