January Nymex natural gas futures extended a relief rally into the fourth trading day Monday as hints of colder January weather provided some support, but weather and fundamental outlooks suggested the upside movement would be short lived.

At A Glance:

  • Futures reverse early larger gains
  • Supply outweighs brief weather support
  • Cooldown helps cash mostly higher

The front-month contract settled at $2.503/MMBtu, up 1.2 cents from Friday but well off an early high of $2.597. February futures closed at $2.416 after reversing early gains off Friday’s $2.425 settlement.

NGI’s Spot National Avg. jumped 28.0 cents to $2.555. The West Texas prices were lower against a broad uptrend as soft demand downstream in California weakened prices.

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