Disappointing storage data notwithstanding, natural gas futures prices surged well past $6.00/MMBtu Thursday as traders appear convinced that colder weather is coming next week – and may even stick around. The January Nymex natural gas futures contract simmered down a little and eventually settled at $5.962, up 23.9 cents on the day. February futures climbed 20.3 cents to $5.820.

At A Glance:

  • Production falls to 97 Bcf/d
  • Forecasts for mixed demand
  • NGI models draw of 41 Bcf

Spot natural gas prices continued to rally on the West Coast, with some California points reaching as high as $36. Hefty increases were also seen in the Northeast. NGI’s Spot Gas National Avg. jumped $2.330 to $8.870.

For all the mild temperatures that have kept a lid on U.S. heating demand this month...