The significant development in the power and gas markets this week originates from the north, specifically from the Arctic region, as frigid air masses move southward to cover much of the continental United States. The Northeast is particularly affected by the incoming wave of extreme cold, with residents already wearing hats, gloves, and scarves and gathering around gas fireplaces for warmth. Spot natural gas prices across this region have already largely reached double digits in today’s trading. Conditions may become even more constrained as the week progresses; however, much of the impact has already been felt with the arrival of winter's icy grip. This market situation serves as an early indicator that the tight conditions observed in the Northeast are likely to extend across a broader expanse of the continental United States, in alignment with the arctic air movement. 

Figure 1 | Eastern Cities Weather Forecast