Natural Gas futures reached a three year high.

Natural Gas futures realized significant upward price action as the February contract rallied 30% to 6,780. The move represented the highest level since the end of 2022. Freezing temperatures across the U.S. middle and East Coast drove substantial demand and raised concerns regarding short term production supply. The market structure shifted into significant backwardation, particularly in the February and March spread. While the front of the curve saw aggressive buying, the market indicated a bottom in April before premiums returned for the summer months. Price action across Natural Gas futures continued to trend higher as the storm proved as severe as anticipated.