• Latest weather data sends natural futures into the red
  • Outlook still frigid and big storage draws expected
  • Cash surges as polar freeze blankets much of U.S.

Natural gas futures rallied early Friday, surpassing the coveted $3.000 mark as an already frigid forecast shifted notably colder overnight. However, the gains failed to hold as the long-range outlook showed signs of the deep freeze fading later this month.

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The March Nymex gas futures contract closed the week at $2.863, down 7.2 cents from Thursday’s close. April slipped 4.8 cents to $2.841.

Cash prices strengthened, however, as the polar plunge descended into the Midwest before slowly crawling toward the East Coast. NGI’s Spot Gas National Avg. climbed 76.0 cents to $4.010.

Though he doesn’t have the best...