Blizzard Warning: Natural Gas Prices Prepare for Opening Day Fluctuations on Sunday

LootboxPhobia · 2026-02-22T02:55:44+00:00

The U.S. East Coast is about to experience a severe snowstorm, which is expected to significantly increase demand for natural gas heating. When the natural gas market opens on Sunday night, if the weather worsens, a "weather premium" with rapid price increases is expected. Extremely cold temperatures are driving demand surge, but the risk of power outages may limit the extent of price increases. Market consensus leans bullish, and a volatile trading week is expected.

LootboxPhobia

2026-02-22 02:55:44

Abstract generation in progress

Investing.com – Natural gas traders are preparing for market volatility with the opening at 6:00 PM Eastern Time on Sunday (7:00 AM Beijing Time Monday). A large-scale “bomb cyclone” is currently approaching the U.S. East Coast, issuing rare blizzard warnings for major cities like New York and Boston.

This storm is undergoing “bombogenesis,” a technical term referring to rapid intensification of a storm. Forecasts indicate up to two feet of snow and winds of 50 miles per hour, with the massive event expected to significantly boost heating demand in the country’s most densely populated areas.

Upgrade to InvestingPro for more insights – now with up to 50% off

Why Sunday Market Opening Is Critical

When the natural gas market reopens on Sunday evening, if severe weather worsens over the weekend, prices often “gap up” or surge sharply. Since millions of households and businesses in the Northeast rely on natural gas for heating, this scale of blizzard forces utilities to buy more fuel immediately.

Investors will closely watch the opening prices. If the storm stays on its current path, the sudden surge in demand could clash with limited supply. This typically results in “weather premiums,” where prices spike quickly to account for expected cold temperatures extending into early next week.

Heating Demand and Power Outage Risks

The main driver of price increases is extreme cold. When temperatures plummet, furnaces run nonstop, depleting natural gas inventories faster than usual. For non-professional investors, this is a straightforward case of high demand meeting stable supply, which often pushes prices higher.

However, secondary risks include power outages. Heavy snow and strong winds could knock out power for millions, causing some electric-powered heating systems to shut down. This can sometimes “limit” price increases, as homes without power do not consume natural gas.

Despite this risk, the consensus entering Sunday evening’s market is bullish. With multiple states issuing emergency alerts and travel warnings, the market is prioritizing immediate heating fuel demand. As the East Coast recovers from the blizzard, the trading week is expected to start with rapid volatility.

Simon Mugo reports

This article was translated with artificial intelligence assistance. For more information, see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes