Natural gas futures advanced Friday as traders shrugged off a disappointing government inventory report and focused instead on robust heating demand, as well as forecasts for additional blasts of freezing weather later in January.

At A Glance:

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

The February Nymex gas futures contract gained 10.4 cents day/day and settled at $3.916/MMBtu. March climbed 5.6 cents to $3.726. NGI’s Spot Gas National Avg. shed 69.0 cents to $5.570, but only after soaring nearly $2.00 over the two prior days.

The latest weather on Friday trended colder overall for the final third of January. This would build on a frigid start to the month that included subzero temperatures during the first trading week of the year...