Natural gas futures bounced around Wednesday after weather models added a large chunk of demand to the long-range outlook, with frigid Canadian air forecast to plunge into the Lower 48 next week. After a sharp rally overnight lost momentum, confirmation in the midday data sent the January Nymex gas futures contract roaring higher and ultimately to a $5.723/MMBtu settlement. February futures shot up 23.9 cents to $5.617.

At A Glance:

  • Permian leads production drop
  • Mid-December cold now expected
  • Spot gas rises on West, East coasts

Spot gas prices were sharply higher out West, fueled by another round of bitter cold and snow. NGI’s Spot Gas National Avg. climbed 73.5 cents to $6.540.

After falling for four straight sessions, futures rebounded overnight after both the Global...