Many observers, though, expect that higher demand for natural gas to heat homes and fire power plants, along with lower production, could steadily trim away at the large natural gas inventories even in a normal winter season.

“The stakes are higher come winter time because weather is a bigger factor. Cold weather can really increase demand,” Kent Bayazitoglu, director of market analytics at Gelber & Associates, told the WSJ.

Consequently, analysts argued that the diminished outlook on arctic blats with milder temperatures in mid-January could end a string of huge withdrawals from natgas storage.

“We continue to watch the complete collapse of this briefly colder pattern starting as early as early next week,” forecasters at Commodity Weather Group LLC wrote Tuesday.

For more information on the natgas market, visit our natural gas category.

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