Extreme cold and winter weather in the eastern US causes natural gas futures to surge by over 75% in the past five days, the largest jump since 1990. Major US natural gas producers EQT and Antero Resources see shares rise 6% and 4% respectively. A massive storm is set to impact over 150 million people, with freezing rain, blizzards, and arctic blasts expected.

Natural gas, responsible for 47% of US heating demand, sees increased usage during cold weather for heating and electricity generation. Department of Homeland Security Secretary Kristi Noem warns of power outages, pipe bursts, and airport delays. Natural gas faces greater volatility than oil, with growing demand in the northeast outpacing pipeline infrastructure capacity.

Data centers are adding strain to natural gas markets as Big Tech companies use natural gas for power while waiting for grid connections. Utilities analysts at Jefferies warn of power sector risks due to reduced flexibility. Historical comparison to Winter Storm Uri in 2021 reveals major disruptions in gas and power sectors.

Severe winter storms highlight the misalignment between natural gas market design and operational needs of gas-fired power plants, leading to widespread outages. Jake Conley, a breaking news reporter for Yahoo Finance, covers the impact of extreme weather events on US equities.

Read more at Yahoo Finance: Natural gas prices soar with massive winter storm, arctic blast set to impact almost half the country