The polar vortex is pushing south and east in a cold snap that could be record high in parts of the United States.
Several models are converging around cold weather in the eastern half of the US in the second week of January. The peak of the cold appears to be around January 12 but some of the modeling has a long period of cold. If it emerges, natural gas demand will certainly be higher in the US and that could be combined with a good shutdown due to freezes in Texas and the Marcellus.
US natural gas, monthly
Needless to say, there could be macro effects as well. Higher natural gas prices will feed into core inflation while I would also expect the cold to dampen US consumer spending.
Henry hub natural gas prices on the February contract last rose 59-cents to $3.98.
