Still on a sugar high from too many Cadbury eggs over the Easter holiday weekend, natural gas futures prices soared as weather data showed cool weather returning to the Lower 48 in about a week’s time. With some short-covering likely aiding the rally, the May Nymex natural gas contract settled Monday’s regular session at $2.172/MMBtu, up 16.1 cents from Friday.

At A Glance:

  • Weather system to drive up demand
  • LNG demand holding strong
  • Pipeline work pressures Permian cash

Spot natural gas prices were mixed as large gains on the West Coast negated moderate declines elsewhere – including negative prices in West Texas. NGI’s Spot Gas National Avg. ultimately climbed 19.0 cents to $2.475.

With traders back at their desk on Monday, the latest weather models dominated...