U.S. Natural Gas Extends Historic Rally as Cold Hits East Coast

Futures are off to strongest start to a year since the contracts were launched in 1990 as traders scramble to cover wrong-way bets on winter weather 

A horizontal drilling rig on the site of a natural gas well in Chartiers Township, Washington County, Pennsylvania.

Photographer: Andrew Harrer/Bloomberg

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U.S. natural gas futures are off to the strongest start to a year since their debut more than three decades ago as frigid weather stokes heating demand and traders rush to unwind bearish bets.

Futures for February delivery climbed 14% to settle at $4.857 per million British thermal units on Wednesday, bringing the year-to-date advance to a record 30%. Weather forecasts are turning colder for major population centers along the East Coast while a winter storm is expected to slam the South over the weekend.