Natural gas forwards rallied throughout the trading period ending May 18 as early-season heating demand, rising exports and production declines stoked supply concerns.

June fixed prices jumped an average 64.0 cents, as did the balance of summer (June-October), according to NGI’s Forward Look. The winter 2022-2023 package (November-March) bounced an impressive 58.0 cents on average through the period, while the Calendar Year 2023 strip shot up 33.0 cents on average.

Basis trading again was mostly muted, with U.S. markets largely following the benchmark Henry Hub higher against a bullish macro backdrop. California markets were an exception, but it wasn’t the heat that boosted prices at the front of the curve. Instead, the region was bracing for yet another round of brutal cold...