Natural gas futures exploded early Monday as weather models shifted colder with a double whammy of bitter wintry weather expected to sweep across the Lower 48 later this month. While subsequent model runs sapped quite a bit of momentum, the January Nymex gas futures contract still settled 34.2 cents higher at $6.587/MMBtu. February futures jumped 33.4 cents to $6.416.

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At A Glance:

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

Spot gas prices followed suit in most regions outside of the West Coast. NGI’s Spot Gas National Avg. picked up 82.0 cents to reach $11.635.

For all the excitement the weekend weather models brought to the gas market early Monday, the European ensemble trended much warmer in the afternoon. Specifically, it trended warmer...