- Natural gas futures bounce as weather models trend colder
- Cold potentially returning late-February/early March
- Cash prices crater as latest cold blast expected to move out quickly
A notably more frigid weather outlook developed over the holiday weekend, helping to send natural gas futures sharply higher in early trading Tuesday. The March Nymex contract was trading at $1.949/MMBtu at around 8:40 a.m. ET, up 11.2 cents from last Friday’s settle.
Natural gas futures capped last week with a modest gain as the latest weather data gave bulls enough momentum to prevent another leg lower ahead of the long holiday weekend. The March Nymex gas futures contract climbed 1.1 cents to settle Friday at $1.837. April was unchanged at $1.856.
Cash prices were not as supported. With Presidents’ Day extending the weekend by a day and a winter blast set to exit key demand regions fairly quickly, the NGI Spot Gas National Avg. tumbled 20.0 cents to $1.700.
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