A Warmer Climate for American Gas: Liam Denning

New Yorkers bowing their heads into a cutting wind is typically a bullish sign for natural gas prices, and this January is no exception. The rally extends beyond immediate conditions, though, with average futures for the next 12 months close to breaking above $4 per million British Thermal Units for the first time since January 2023, when they were coming down from the prior year’s Ukraine war-related spike. Beyond the cold weather, there is a shift in the overall climate for gas, centered on a revival in US electricity demand.

For more than a decade, natural gas has delighted customers but mostly disappointed investors. Shale ...