“Our sentiment has ticked slightly bullish in that weekend weather models were some of the most dramatic in recent memory, with all guidance adding an incredible amount of heating demand against the odds,” Bespoke said. “Models do remain incredibly chaotic, and they will continue to bounce prices around significantly as attempting to determine what any individual run will show is near impossible.

Bespoke also added that while a loose Energy Information Administration storage report could pressure prices during any long-range warming trends, the “cold is so impressive as to keep a continual bid under the front of the strip and bring about a major short-covering rally today that keeps us from seeing any top yet.”

The weather system will push across the northern U.S. over the next several days, bringing rain and snow, which could raise heating demand or demand for natural gas. Natural gas prices typically rise ahead of the winter as cold weather fuels indoor-heating demand. The November through march months have traditionally been the seasonal heating period when demand for U.S. gas consumption is at its peak.

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