U.S. natural gas futures surged Monday, with the front-month February contract rising 28.9 percent to 6.800 US dollars per MMBtu, the highest settlement since December 15, 2022, Bloomberg reported. The March contract gained 8 percent to 3.898 US dollars per MMBtu.

The spike followed winter storm Fern, which disrupted nearly 10 percent of U.S. gas production, DNB Carnegie analysts said, and drove up regional spot prices. Gas deliveries to U.S. liquefied natural gas export plants fell sharply over the weekend, raising concerns for Europe and Asia amid rising cold-weather demand.

European storage remains below 46 percent of capacity, while U.S. stocks entered the storm 4.8 percent above last year and 6.1 percent above the five-year average, according to the U.S. Energy Information Administration. ING analysts said price strength could be short-lived if disruptions ease.

Mizuho analyst Robert Yawger noted the widening gap between front-month and later contracts, warning of volatility when the February contract expires.

Oil futures were slightly lower, with Nymex crude for March down 0.7 percent to 60.63 US dollars per barrel and Brent down 0.4 percent to 65.59 US dollars per barrel. Analysts cited a balance of geopolitical risk and weak supply-demand dynamics. OPEC+ is expected to maintain its production pause for March, Reuters reported.

Year-to-date, U.S. natural gas has jumped 84.5 percent, while Nymex crude has gained 5.6 percent.