Natural gas prices surged to an 8.5-month high on Friday due to expectations of colder US weather, driving up heating demand. The Commodity Weather Group predicts intense cold in the Northeast and Great Lakes region for December 3-7, with below-normal temperatures in the weeks ahead.

Despite record-high US natural gas production, prices rose as US (lower-48) dry gas production hit a record 113.4 bcf/day and state gas demand reached 98.6 bcf/day. LNG net flows to US export terminals increased to 18.5 bcf/day, supporting prices along with rising US electricity output.

Recent EIA reports showed a larger-than-expected draw in natural gas inventories, signaling tight supplies. US gas storage is at 77% capacity, lower than the 5-year average of 88%. Baker Hughes reported a rise in active US gas drilling rigs to 130, the highest in 2.25 years, indicating increased production.

Read more at Yahoo Finance: Nat-Gas Prices Soar as Forecasts for Below Normal US Temperatures