Following back-to-back weekly declines to start the new year, natural gas futures on Tuesday rebounded amid forecasts for fresh bouts of cold later this month. The February Nymex gas futures contract gained 16.7 cents day/day and settled at $3.586/MMBtu. March rose 5.7 cents to $3.253.

Storage Estimates

At A Glance:

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

NGI’s Spot Gas National Avg. on Tuesday jumped 90.5 cents to $6.115.

The prompt month had shed 27.6 cents on Friday ahead of the Martin Luther King Jr. Day holiday weekend and after several days of unseasonably warm weather to start 2023. Production also proved strong and held around 101 Bcf/d, near record levels of about 102 Bcf/d, according to Bloomberg’s estimate Tuesday.

However, colder...