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Winter's Worst Cold Drives February Natural Gas Futures Higher - Natural Gas Intelligence


Winter’s Worst Cold Drives February Natural Gas Futures Higher
Weather outlooks increased the likelihood of robust heating demand
LNG export levels gathered new momentum
Cash prices climbed for a third straight day
Natural gas futures extended gains on Tuesday, as traders absorbed news of weather forecasts shifting even colder after a similar change in models over the weekend. The weather outlooks increased the likelihood of robust heating demand the rest of January and into early February, fueling futures.
The February Nymex gas futures contract settled at $2.656 on Tuesday, up 5.4 cents day/day. Both the domestic and European weather models produced forecasts that, if they hold up, could make the coming two weeks colder than the five-year average. On Monday, the prompt month surged 15.6 cents. ....

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Natural Gas Forwards Close Out 2020 with Steep Losses Amid Warm January Outlook


Natural Gas Forwards Close Out 2020 with Steep Losses Amid Warm January Outlook
With Old Man Winter appearing to trade in his snow boots for flip flops, natural gas forward prices ratcheted up declines during the final week of 2020. February prices tumbled an average of 11.0 cents from Dec. 24 to 30, while the balance of winter (February-March) fell an average 9.0 cents, according to
Smaller losses of around a nickel were seen for next summer and the winter 2021-2022 strip at the majority of pricing hubs, however, Northeast points continued to register steep losses that far out the curve.
Henry Hub futures were especially volatile, because of both big changes on the weather front and the typical volatility that accompanies the expiration of a Nymex contract. The January futures contract rolled off the board at $2.467 after trading to an intraday high of $2.632 on Christmas Eve. ....

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January Natural Gas at $2.30 After Weather Data Crushes Hopes for Cold


January Natural Gas at $2.30 After Weather Data Crushes Hopes for Cold
Natural gas futures tumble as weather models turn increasingly mild
LNG demand still strong as global gas prices remain near multi-year highs
Cash prices plummet amid lackluster demand
Natural gas futures tumbled more than 20 cents lower in post-Christmas trading as weather data “failed miserably” over the weekend, shedding a hefty amount of demand from the 15-day outlook.
With any opportunity for truly cold weather not expected before the middle of next month, the January Nymex gas futures contract settled Monday at $2.305/MMBtu, down 21.3 cents from last Thursday’s close. February plunged 18.6 cents to $2.326. ....

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