US Natural Gas Futures Surge 5.2% on Heat Forecasts

US natural gas futures recorded their largest intraday price increase since May 28 on August 10, climbing as much as 5.2% to $2.801 per million Btu. The surge followed weather forecasts from Commodity Weather Group predicting significantly hotter temperatures across the central and southern United States, which typically drives higher electricity demand and increased reliance on gas-fired power plants.

This forecast triggered aggressive short-covering by hedge funds and money managers. According to data from the United States Commodity Futures Trading Commission, these investors had held the largest net-short positions on Henry Hub contracts since 2020, creating a volatile environment when prices began to climb.

Supply factors further pressured prices upward as seasonal maintenance concluded, leading to a jump in flows to liquefied natural gas export terminals on the US Gulf Coast. Despite the intraday spike, prices remain below recent peaks because of high domestic stockpiles and anticipated new supply arriving from West Texas pipelines.