Natural gas futures kicked off 2024 trading on Tuesday in rally mode, supported by forecasts for stronger heating demand and steady calls for U.S. LNG, though gains were held in check by stout supply.

At A Glance:

  • Frigid air on the horizon
  • Production stays strong
  • NGI models 40 Bcf draw

Coming off a 4.3-cent decline Friday ahead of the long New Year’s holiday weekend, the February Nymex gas futures contract rebounded 5.4 cents on Tuesday and settled at $2.568/MMBtu. The front month had climbed more than 10.0 cents early in the session.

NGI’s Spot Gas National Avg. jumped 20.5 cents to $2.480 on Tuesday.

While temperatures to start the year remained seasonally mild and were expected to remain so for a few more days, forecasts pointed to a decidedly sharp turn next...