U.S. natural gas prices rocketed Wednesday as forecasts for an Arctic blast capable of driving temperatures to near-century lows forced traders to aggressively reprice heating demand and the risk of supply disruptions in the coming days.

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Natural gas futures at the Henry Hub jumped nearly 24% to around $4.77 per MMBtu, mirroring the sharp gains seen in the prior session.

The back-to-back rally pushed the commodity's two-day advance to nearly 54%, marking both the strongest two-day and weekly move on record since natural gas began trading in 1990.

“The brutal cold sweeping across the United States is expected to choke natural gas production, disrupt pipeline flows and upset operations at power plants and LNG export terminals as it spreads later this week,” said the Natural Gas Intelligence in a report released Wednesday.

The price shock rippled quickly through equities tied to U.S. gas production. EQT Corp (NYSE:EQT) climbed roughly 6.5%, while Antero Resources Corp (NYSE:AR) gained about 4.5%. APA Corp (NYSE:APA) also rose approximately 4.4%.

According to Celsius Energy, the U.S. Energy Information Administration's storage report for the week ending Jan. 30 could show a "gargantuan" 370 billion cubic feet withdrawal. If confirmed, the firm said the draw would mark the largest weekly withdrawal on record, surpassing the 359 Bcf pull reported for the week of Jan. 5, 2018.

Severe Arctic Blast Risks Disrupting Natural Gas Flows

According to the latest weather forecasts from the National Weather Service, a lake-effect snow is expected downwind of the Great Lakes over the coming days as shortwave energy rotates around an upper-level low near Hudson Bay, sending multiple low-pressure systems through the region.

Snow accumulations of 6 to 12 inches are expected in many areas, with isolated totals approaching two feet possible near Lake Ontario by Friday morning. Winter storm warnings are already in effect across parts of Michigan and upstate New York.

Behind the storm systems, dangerously cold Arctic air is forecast to spill across the Great Plains and Midwest before expanding into the Ohio Valley and Northeast by the weekend.

Sub-zero and single-digit temperatures, combined with gusty winds, could drive wind chills below minus 50 degrees in parts of the Northern Plains, prompting extreme cold warnings and advisories across several states.

“An Arctic air mass poised to plunge deep into the southern Lower 48 this weekend threatens to deliver some of the coldest weather of the past 80 years and drive a natural gas storage withdrawal that could obliterate the all-time record,” Natural Gas Intelligence added.

On Thursday, the U.S. Energy Information Administration is scheduled to release its natural gas storage report for the week ending Jan. 16.

Economists are forecasting a withdrawal of roughly 82 billion cubic feet, compared with a 71 Bcf draw the previous week, reinforcing expectations that inventories could tighten faster than previously anticipated if severe winter conditions persist.

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