yolowire.com - NaturalGas prices continue to rise as cold winter weather grips both North America and Europe.
Demand for natural gas to heat homes and businesses is spiking as winter weather descends on large parts of the U.S. and continental Europe, leading to high flows of LNG feed gas to export facilities.
In the past 24 hours, natural gas prices have risen 6% to reach $3.94 U.S. per one million British thermal units (MMBtu).
The rise in the price of natural gas indicates strong demand that analysts say is likely to continue.
Much of the central U.S. is in the grips of cold, snowy weather. At the same time, parts of Europe that seldom see snow, such as the United Kingdom (TADAWUL:4280), have been dumped on.
The situation has led traders and analysts to adjust their price targets on natural gas in anticipation of larger inventory drawdowns in coming weeks.
According to forecasting service NatGasWeather.com, freezing temperatures are expected to persist and lead to larger than normal drawdowns of natural gas in coming days and weeks.