As the stock market floundered over the past several sessions, natural gas prices rose. Henry Hub futures ended Monday up 17% in March, with a year-to-date gain of 47%. The price, at $4.51 per million British thermal units, was the highest since the February 2022 spike that followed Russia's invasion of Ukraine.
Cold winter weather was the initial antagonist sending this year's prices higher. But, just as weather has moderated this week, the impact of tariffs and threat of a surcharge on power coming into the U.S. from Canada raised a new series of worries, sending natural gas prices and gas companies stocks higher.
President Donald Trump cranked his tariff war against Canada to a new level Tuesday, hoisting duties against steel and aluminum to 50%. The move was in response to tariffs imposed by Canada after the U.S. launched its trade war against the country. The Canadian charges included a surcharge on electrical prices, a move that sent U.S. natural gas prices and stocks higher over the past several sessions.
Trump has, for now, paused the onset of tariffs against Canadian natural gas sold in the U.S. But Ontario Premier Doug Ford on Monday initiated a 25% retaliatory surcharge on electricity sent over the border. Ford said he could potentially cut those supplies altogether.
By bidding up gas futures, Wall Street Journal commodities reporter Ryan Dezember wrote, traders are betting that domestic fuel will be substituted for more expensive — and potentially unavailable — supply from Canada.
The surcharge will affect roughly 1.5 million households and businesses in New York, Michigan and Minnesota, Dezember reports. Whether that surcharge may show up in consumers bills, or just cut into utility profits was not clear.
But the overview presumed an increase in demand for U.S. natural gas. That sent some gas producers higher in the midst of Monday's market slide.
Natural Gas Stocks
Comstock Resources, a producer focused on the Haynesville shale area of Arkansas and Louisiana, rallied more than 6% Friday. It gave up a bit more than 1% on Monday, then turned and jumped more than 6% Tuesday.
Antero Resources produces natural gas out of the Marcellus and Utica shale regions of Ohio and West Virginia. It popped 3% on Monday, and added another 4% on Tuesday morning.
Devon Energy's operations are spread from the Eagle Ford shale in southern Texas to Wyoming's Powder River Basin and the Williston shale in North Dakota. Its shares rallied Thursday and Friday, dipped more than 1% Monday, then bounced not quite 1% on Tuesday.
Range Resources is one of the top acreage holdings in the Marcellus and Utica shales. It rallied 3.5% against Monday's downdraft. It added another 4% early Tuesday.
The U.S. Natural Gas Fund ETF bounced off support at its 10-day line on Friday, then gained not quite 3% on Monday — notching its highest close since January 2024. On Tuesday, the fund notched a narrow gain.
