Natural gas surges as January turns frigid: Will the rally continue?

Natural gas prices hit a 52-week high of $4.201 per thousand cubic feet as frigid weather grips the Eastern U.S. Forecasts predict colder-than-average temperatures and snowstorms through mid-January, driving up heating demand. The surge comes alongside concerns over potential supply disruptions, including freeze-offs in the Marcellus Shale, and strong export demand for LNG.

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Bullish sentiment dominates

Year-to-date, natural gas prices are up 58%, with a 15% spike in February futures on Monday alone. Algorithmic funds have shifted to net long positions, reflecting growing confidence in further price increases.

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Key technical levels for natural gas

Resistance lies at $4.176 and $4.363, with support at $3.852 and $3.614. The trajectory hinges on whether frigid weather persists into late January or eases, leaving traders on edge as the market watches every shift.

Read the full article here: https://www.fxstreet.com/analysis/natural-gas-how-high-can-prices-go-as-january-turns-frigid-202501020908