Markets

Despite trading in the negative early Monday, the possibility of cold weather returning to the United States around Christmas was enough to send natural gas futures prices nearly 18 cents higher by midday. The Nymex January gas futures contract eventually went on to settle up just 5.7 cents at $4.545, while February slipped 1.8 cents to $4.360 and March slid 1.9 cents to $4.136.

Despite trading in the negative early Monday, the possibility of cold weather returning to the United States around Christmas was enough to send natural gas futures prices nearly 18 cents higher by midday. The Nymex January gas futures contract eventually went on to settle up just 5.7 cents at $4.545, while February slipped 1.8 cents to $4.360 and March slid 1.9 cents to $4.136.

A jittery natural gas market plagued by a historic storage deficit that has only worsened before the peak of the winter season got some good news on the weather front as outlooks showed warmer temperatures beginning next week, a trend that could last for the next several weeks. January forward prices plunged an average 41 cents from Nov. 29-Dec. 5, while the balance of winter (February-March) dropped an average 31 cents, according to NGI’s Forward Look.

Natural gas traders were not taking any chances in holding short positions on Friday given continuously fluctuating weather forecasts. The Nymex January gas futures contract rocketed 16.1 cents higher to settle at $4.488, while February climbed 16.1 cents to $4.378 and March rose 23.1 cents to $4.155.

While natural gas futures prices continued to swing wildly in both directions during the Dec. 3-7 period, cash market direction was more clear as mild start to the week quickly gave way to more frigid conditions by midweek.

Natural gas traders were not taking any chances in holding short positions on Friday given continuously fluctuating weather forecasts. The Nymex January gas futures contract rocketed 16.1 cents higher to settle at $4.488, while February climbed 16.1 cents to $4.378 and March rose 23.1 cents to $4.155.

January natural gas futures were trading 5.9 cents higher at $4.386/MMBtu shortly before 9 a.m. ET Friday, with overnight forecasts mixed as the market awaits the upcoming release of government storage data.

The Energy Information Administration (EIA) reported a 63 Bcf withdrawal from Lower 48 natural gas inventories for the week ending Nov. 30, on the higher end of market expectations but within the range.

The Organization of the Petroleum Exporting Countries, aka OPEC, and its Russian-led allies on Friday agreed to further reduce global oil output in an attempt to balance an overflowing market and stem falling prices.