Natural gas prices surged on Tuesday as a large swath of the country prepares for a powerful winter storm expected to arrive this weekend, bringing dangerous cold and disruptive weather to millions.
The National Weather Service is forecasting a widespread mix of winter conditions, including extreme cold, freezing rain, and heavy snowfall. The system is expected to begin on Friday and linger into next week, covering a huge portion of the United States. Forecasters warned the conditions could be “hazardous,” with travel disruptions and increased risk to infrastructure likely in many regions.
Markets reacted quickly to the outlook. The price of natural gas, which many households rely on to heat their homes, jumped roughly 25% in anticipation of higher demand as temperatures drop. When colder weather hits, consumers typically turn up their thermostats, pushing up usage and putting additional pressure on supply.
The price spike comes at a time when many families are already struggling with elevated heating costs. According to a report released last month by the National Energy Assistance Directors’ Association, the average household is expected to spend close to $1,000 on home heating between mid-November and March. That projection was made before the latest storm forecast, raising concerns that some bills could climb even higher.
Analysts say the coming cold snap could have a noticeable impact on monthly expenses. “The severe cold will manifest itself in very expensive natural gas bills arriving in February,” said oil analyst Tom Kloza in an email. He added that weather-driven price swings tend to hit consumers with a delay, meaning the financial impact may be felt well after the storm passes.
Rising energy costs are piling on to other financial pressures. Many households are already coping with high housing costs, higher grocery prices, and uncertainty amid a softer labor market. Those factors make unexpected spikes in utility bills even harder to absorb.
The issue also carries political weight. President Donald Trump pledged during his most recent campaign to cut energy and electricity prices in half, a promise that has drawn renewed attention amid price fluctuations.
Looking beyond this winter, the U.S. Energy Information Administration recently released its Short-Term Energy Outlook on Jan. 13. The agency said it expects natural gas prices to decline in 2026 but then rise again in 2027. The report noted that “growth in demand—led by expanding liquefied natural gas exports and more natural gas consumption in the electric power sector—will outpace production growth.”
Businesses are also vulnerable to sudden increases in natural gas prices. Kloza warned that when costs rise too quickly, companies may be forced to seek alternatives. “Soaring natural gas prices and a lack of availability can have pretty drastic impacts on diesel, heating oil, kerosene, and other liquid fuels,” he said.
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