Natural gas futures rallied again midweek as sub-freezing temperatures descended into the Lower 48, resulting in a precipitous decline in production from freeze-offs. The March Nymex contract, which expires on Thursday, settled at $4.623/MMBtu, up 12.5 cents on the day. April climbed 13.2 cents to $4.593.

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At A Glance:

  • Production at 96.5 Bcf/d
  • Uneven weather outlook
  • Storage situation improves

Spot gas prices also gathered momentum, with plump increases in the Northeast driving NGI’s Spot Gas National Avg. up $1.175 to $5.710.

Already in the green at the start of Wednesday’s trading session, the March Nymex futures contract rallied to a $4.704 intraday high as early data suggested that production had fallen by around 4 Bcf day/day. Bloomberg showed output near 91.4 Bcf,...