After five straight days in positive territory, natural gas bulls may struggle to keep momentum going amid continued weather model volatility. Though they managed to eke out another substantial price increase on Tuesday, warmer trends in the weather models took a hatchet to early gains. The Nymex January gas futures contract reached a $7.105 intraday high but eventually settled at $6.935/MMBtu, up 34.8 cents on the day.

California Prices

At A Glance:

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

Spot gas prices also moved up sharply on Tuesday, with ongoing chilly weather and supply constraints fueling a surge to $75.00 in Northern California. NGI’s Spot Gas National Avg. jumped $2.365 to $14.000.

After pummeling the West Coast, a major winter storm is...