• Forecasts called for a late January freeze
  • But outlooks were mixed on the intensity of the cold blast
  • Cash prices climbed, led higher by hubs in the Northeast

Natural gas prices surged early on Tuesday amid expectations for intensifying U.S. liquefied natural gas (LNG) export demand and increased anticipation of subfreezing air descending from Canada and covering large parts of the Lower 48 in late January.

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After spiking about 15 cents in morning trading, the February Nymex gas futures contract gave back much of the gains in the afternoon following midday weather runs that showed lighter intensity in the coming cold. When the dust cleared, however, the prompt month was up six-tenths of a cent day/day and settled at $2.753. March rose four-tenths of a cent to $2.707.

NGI’s...