Several meteorologists predicted Dec. 30 that conditions could lead to a bitterly cold January for much of the U.S., leading natural gas prices to spike, setting another high for the year.

The National Weather Service called for below-average temperatures, primarily for the East Coast, beginning in the first week of January and potentially colder temperatures in the two following weeks.

The natural gas price for front-month futures at the Henry Hub took a corresponding leap. After trading at above $4/MMBtu, the price had fallen to about $3.95/MMBtu by mid-day, an increase of more than $0.50 from the start of trading and another high for the year.

Natural gas prices have spent most of 2024 below $2.50/MMBtu and several months below $2. The price rose past $3/MMBtu in November. According to analysts, the market was responding to oncoming demand from expanding LNG export capacity and power generation as well as the cold snap.