Nevertheless, the weather forecaster said that any hint of sustained cold would likely send natgas prices surging again.

“Warmth dominating through the month should allow balances to stay loose and will ease the majority of storage concerns, which could even make prices around $4 appear overvalued if warmth can win out into the first third of January as well,” Bespoke added. “However, it would be premature of this market to price out any colder risks in January.”

The Energy Information Administration revealed on Thursday a slightly smaller-than-anticipated drawdown of 77 billion cubic feet, compared to the five-year average withdrawal of 79 Bcf but it was still higher than last year’s 59 Bcf pull. Total gas in storage fell to 2,914 Bcf, or 722 Bcf below last year and 723 Bcf below the five-year average.

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