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.

At A Glance:

  • Midcontinent, Permian freeze-offs cut output
  • Storage deficit expected to shrink
  • One more week of solid cold expected

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...