Commodities
El Niño Brings Sharp Cold to West, Eases Heating Demand in Northeast
El Niño is expected to bring sharp cold temperatures to the West this winter, while easing heating demand in the Northeast. According to a report from Natural Gas Intelligence, the American Gas Association (AGA) sees natural gas heating bills rising only in the West.
The AGA's forecast indicates that California HDDs (heating degree days) are expected to jump 59% this winter, while Algonquin winter fixed prices have increased since July. In contrast, the Northeast is likely to see a decrease in heating demand due to milder temperatures.
This split in temperature and energy demand is largely attributed to El Niño's impact on regional climate patterns. While some areas will experience harsher winters, others will be spared from extreme cold.