Natural Gas Prices Spike as Cold Grips the US
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Natural Gas Prices Spike as Cold Grips the US

Natural Gas Prices Spike as Cold Grips the US

By Kristen Rodman, Staff Writer

November 15, 2013

A blast of Arctic air accompanied snow in areas from the Great Lakes to the Northeast earlier this week, causing natural gas prices to rise throughout the country.

Prices in most places increased by between 10 and 30 cents with the bulk of that rise in the Northeast, according to the U.S. Energy Information Administration’s natural gas weekly update.

“There was a sharp change to colder weather,” AccuWeather Senior Meteorologist Dale Mohler said. “It was a brief shot of fairly intense cold.”

This cold dropped temperatures to 15 degrees below normal in some areas, including New York City.

In addition, areas from Boston to New York City and Philadelphia received their first snow of the season on Tuesday.

Despite the short-lived cold spurt, total consumption of natural gas increased by 15.6 percent from the previous week due to an increase in residential and commercial consumption, according to data from Bentek Energy and the EIA.

These increases were directly influenced by the week’s onset of cooler-than-normal weather, reported the EIA.

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As the East and Ohio Valley observe a warmup over the next few days, another cold wave will be ushered into the Central and Eastern states next week.

“The cold that’s coming is less intense. Temperatures will be 5 to 10 degrees below normal,” Mohler said.

Even though the next cold wave will not last long, it may again inflate natural gas prices.

An increase in these prices could result from higher energy use during periods of colder weather, as one-half of U.S. households use natural gas as their primary heating, according to the U.S. Census Bureau’s 2012 American Community Survey.

As a whole, this winter, prices are expected to increase 13 percent for those using primarily natural gas to heat their homes, according to the EIA. This means an increase of roughly $80 compared to last winter.

Full U.S. Winter Forecast

In the West, residents can anticipate an inflation of up to 10 percent of costs, and residents in the Northeast should prepare for up to a 15 percent rise in prices, according to the EIA Short Term Energy and Winter Fuels Outlook.

Continue reading at Natural Gas Prices Spike as Cold Grips the US.

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