Natural gas futures surged on Wednesday, extending the first lengthy rally of 2022 to four straight days as forecasts for bitter cold temperatures and lofty heating demand intensified. The February Nymex gas futures contract soared 60.8 cents day/day and settled at $4.857. March jumped 35.9 cents to $4.327.

At A Glance:

  • ‘Strongest demand’ of winter looms
  • Production ticks up, but remains modest
  • Market expects triple-digit storage pull

NGI’s Spot Gas National Avg. also sailed higher, gaining 52.5 cents to $5.560.

While production estimates climbed back up to 94 Bcf on Wednesday from 92 Bcf to start the week, output still remained about 2 Bcf below late-2021 highs following freeze-offs early this year that curtailed producer activity.

At the same time, following harsh...