Natural Gas Futures Slip as Bitter Cold Seen Fading; Cash Mixed
Weather models hint at polar set-up easing before month’s end
Hefty storage withdrawals still on tap for next few weeks
Midwest cash strong amid below-freezing temperatures
After hinting at some weakness earlier in the week, natural gas futures moved decidedly lower on Tuesday as traders realized they may have given Punxsutawney Phil a little too much credit. With the brutal cold circulating through the Lower 48 seen fading before month’s end and a more seasonal pattern in store thereafter, the March Nymex gas futures contract settled 4.7 cents lower at $2.835. April fell 3.9 cents to $2.823.
Snow and bitter cold from Europe to North Asia, which has pushed liquefied natural gas (LNG) and electricity prices to record-setting highs, hasn’t eased as the rally stretches into another week.
Winter weather has combined with supply outages and shipping constraints in recent weeks to create a historic stretch for the global gas market. Temperatures in China hit their lowest in decades, while snow has plagued Japan, where electricity prices skyrocketed.
Spot LNG prices in Asia hit $21.45/MMBtu on Friday, up from lows of less than $3.00 only nine months ago. On Monday, Asian prices were assessed above $28.00, and one bid from