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Natural-gas futures jump 20% with cold snap around the corner

Natural-gas futures shot up on Monday as freezing temperatures are expected on the East Coast in January, which will increase demand for the fuel used to heat homes.

Front-month futures contracts for natural gas rose more than 20%, reaching their highest level in nearly two years.

The First Trust Natural Gas ETF, which includes the likes of Comstock Resources and EQT Corp, is up more than 3% as of 1:15 p.m. ET.

Meteorologists might have a bit of egg, as well as cold air, on their faces. In early November, forecasts for a mild winter had sent a popular natural-gas spread known as “the widowmaker” close to zero.

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