Jeremiah Shelor

With demand over the holiday weekend surpassing peak 2013/14 polar vortex levels and frigid temperatures leading to production freeze-offs, natural gas spot prices rocketed higher Tuesday. Even as several Northeast points moderated to trade at less-elevated premiums, the NGI National Spot Gas Average jumped $1.30 to average $8.35/MMBtu.

February natural gas was set to open about 3.4 cents higher at around $2.948 Friday, building on recent momentum as the market has been able to rally on sustained below normal temperatures heading into the new year.

Thanks to bone-chilling temperatures across much of the Lower 48, Friday’s natural gas spot market proved a holiday treat for those craving winter volatility; Midcontinent prices fell back to earth after skyrocketing to record levels the day before, while most regional averages gained anywhere from 50 cents to $7 or more. The NGI National Spot Gas Average gained $1.27 to $7.05.

After a mostly lackluster December, the legitimate heating demand the natural gas market had been waiting for finally arrived just in time to close out 2017. Brutal below average temperatures drove up heating demand across the country, and the NGI Weekly Spot Gas Average for the three-day trading week ended Thursday surged $2.44 to average $5.35/MMBtu.

February natural gas was set to open about 11 cents higher at around $2.846 Thursday, as weather data suggested the current cold blast — expected to extend well into the first week of the new year — could stick around a bit longer.

The Energy Information Administration (EIA) on Thursday reported a storage withdrawal in line with market expectations, and the already surging February contract continued unabated.

Natural gas spot prices at Ventura, IA, skyrocketed to record levels Thursday, hearkening back to the polar vortex conditions of winter 2013/14 and leaving Northern Natural Gas and Northern Border pipelines prepared to take action to maintain balance on their systems.

Extreme frigid temperatures sent spot market prices across the middle of the country surging Thursday, including trades as high as $100/MMBtu in the Midcontinent. The NGI National Spot Gas Average jumped 86 cents to $5.78/MMBtu.

The expiring January natural gas contract was set to open about 5 cents higher Wednesday at around $2.697 amid only small changes to forecasts calling for below-normal temperatures across much of the country the next 10 days and warming after that.