ADVERTISEMENT

U.S. Gas Posts Largest Gain Since October on Chillier Forecast

U.S. Natgas Rises from Five-Month Low as Colder Weather Looms

U.S. natural gas futures posted their largest gain since late October on a chillier weather forecast that calls for more demand of the heating fuel in Chicago and other large population centers. 

Futures for January delivery settled 8.8% higher at $4.06 per million British thermal units on the New York Mercantile Exchange on Monday for the steepest one-day advance since Oct. 25. 

  • Midday update to Global Forecast System model shifted colder for North Plains, Northeast Jan. 6-10: Maxar
  • Latest figures from BNEF:
    • Lower 48 dry gas production ~97.6 bcf, or +6% y/y
    • Lower 48 total gas demand ~84.6 bcf, or -4.7% y/y
    • Dry gas exports to Mexico ~5.8 bcf, or -6.9% w/w
    • Estimated gas flows to LNG export terminals ~12.6 bcf, or -2.3% w/w

Weather: 

  • See WHUT for a map of latest 6-10 day weather forecast: NOAA
  • See WFOR for temperature forecasts, click Browse, then Energy Market Regions then US Lower 48 and then Update

Gas Market News:

©2021 Bloomberg L.P.