HOUSTON (ICIS)--US natural gas futures on the NYMEX jumped higher on 11 January in a pre-weekend rally by 4% from the previous settlement, pushed up by a snap in colder temperatures.
The February ’19 front-month contract closed at $3.10/MMBtu, higher by $0.13/MMBtu day over day. The Henry Hub February ’19 contract gained nearly $0.16/MMBtu since the start of the trading week, which was the first full trading week of the year.
Revised forecasts from firm Radiant Solutions on 11 January showed a wide swath of colder temperatures from the Rocky Mountains to the US East Coast.
Forecasts for a Canadian polar vortex could bring sustained below-normal temperatures to the US, mainly in the Midwest.
This supported demand expectations for heating, which would boost gas-fired generation, particularly at a time when underground storage inventories are at historical lows.
Drawdowns from natural gas storage are expected to continue through the peak winter demand season, which normally ends in the latter half of March.