Natural gas futures in the United States have increased significantly, reaching $2.9 per million British thermal units (MMBtu), the highest level in the last three months.

U.S. natural gas futures jumped about 7% to a 12-week high on Monday on worries some Gulf Coast oil and gas producers would reduce output ahead of a possible hurricane that could hit the region later this week.

In a year where natural gas prices have spent most of the year under $3.00, the stock prices of publicly traded Appalachian gas producers have remained remarkably stable.

Investors would be wise to focus on resilient stocks such as RRC and CTRA. Meanwhile, it may be prudent to avoid more speculative options like CRK.

Canadian natural gas prices slumped to their lowest level in more than two years on Monday and are expected to remain under pressure for weeks, as storage levels in Alberta reach full capacity due to weak demand across North America.

The natural gas market continues to see a lot of volatility, but at this point, I think that the market is trying to price in cooler temperatures, as we as the immediate threat of a hurricane in the Gulf of Mexico.