Natural Gas Futures Surge Amid High Demand and Limited Supply

Natural gas futures rose on Wednesday due to strong demand driven by weather conditions across the United States. This rising demand coincides with limited supply caused by some production freeze-offs.

Although prices experienced a decline in the previous session, colder forecasts for the third week of January have reignited the upward trend. This information is based on a note from Eli Rubin at EBW Analytics.

Rubin pointed out that the market may be underestimating the scale of significant national storage withdrawals occurring in January. He also added that the duration of the production freeze-offs could be longer than initially expected.

In a report released by the Energy Information Administration (EIA) at 20:00 Turkey time, a below-average storage withdrawal is anticipated for the previous week. It is expected that significant inventory withdrawals will occur in the following weeks.

The combination of high demand and limited supply is driving the rise in natural gas futures.