“In what can only be described as one of the largest overnight ensemble changes of the last few years, all guidance moved in a direction that was markedly warmer overnight” with patterns showing “cold having significantly less staying power across the center of the country,” Bespoke Weather Services said Wednesday. “…It had been clear for the past week plus that cold weather risks in February were the one thing propping up an otherwise rapidly loosening natural gas market, and we saw sizable downside once that cold was removed from the equation.”
Natgas prices typically strengthen during the winter months as cold weather conditions fuel indoor-heating demand. The heating season usually lasts from November through March, contributing to peak demand for U.S. natural gas consumption.
The recent winter chill has contributed to increased inventory draws over the past few weeks. The unusually strong natural gas storage withdrawals for natural gas has brought storage levels to the low end of a five-year range and lifted natural gas prices.
For more information on the natgas market, visit our natural gas category.