Leticia Gonzales

What a week – and what a year – it has been for the natural gas market. During the final three days of trading for 2022 gas delivery, spot prices fizzled in grand fashion following spikes induced by Winter Storm Elliott. Losses were widespread and sent some U.S. locations back below $3.00/MMBtu, with NGI’s Weekly Spot Gas National Avg. down a stout $7.185 to $6.510.

Natural gas winter futures closed out 2022 lower as record warmth expected through mid-January, along with quickly recovering production in the wake of Winter Storm Elliott, pressured markets. The February Nymex gas futures contract slipped 8.4 cents to $4.475/MMBtu. March slid 1.3 cents to $4.104.

Blowtorch weather seen persisting through at least mid-January trumped what could be one of the largest natural gas storage withdrawals of the winter season. On its first day at the front of the Nymex futures curve, the February contract settled at $4.559/MMBtu, off 12.6 cents from Wednesday’s close. March futures slipped 7.7 cents to $4.117.

Blowtorch weather seen persisting through at least mid-January trumped what could be one of the largest natural gas storage withdrawals of the winter season. On its first day at the front of the Nymex futures curve, the February contract settled at $4.559/MMBtu, off 12.6 cents from Wednesday’s close. March futures slipped 7.7 cents to $4.117.

• Natural gas futures plummeted on Wednesday as weather models indicated that the warmer pattern that emerged following Winter Storm Elliott may stick around a bit longer than earlier projected. Though supply remains suppressed because of freeze-offs, the January Nymex gas futures contract rolled off the board 57.3 cents lower day/day at $4.709/MMBtu. The February contract, which moves into the prompt position on Thursday, tumbled 43.3 cents to $4.685.

In an eye-opening indication of the impact Winter Storm Elliott had on the natural gas market, the U.S. Energy Information Administration (EIA) on Thursday reported a stunning 213 Bcf withdrawal from storage for the week ending Dec. 23.

Natural gas futures plummeted on Wednesday as weather models indicated that the warmer pattern that emerged following Winter Storm Elliott may stick around a bit longer than earlier projected. Though supply remains suppressed because of freeze-offs, the January Nymex gas futures contract rolled off the board 57.3 cents lower day/day at $4.709/MMBtu. The February contract, which moves into the prompt position on Thursday, tumbled 43.3 cents to $4.685.

With natural gas traders’ fingers and toes still thawing out from the weekend’s Arctic blast, most remained on the sidelines of the action on Tuesday. However, with the potential for cold to return before mid-January and U.S. production sharply lower following widespread freeze-offs, the January Nymex gas futures contract eked out a 20.3-cent gain to settle at $5.282/MMBtu. The February contract climbed 13.8 cents to $5.118.

Natural gas prices exploded higher during the Dec. 12-16 trading period amid the first intimidating cold blast to hit the Lower 48 since the start of winter. With production curtailments to boot because of wellhead freeze-offs, NGI’s Spot Gas National Avg. jumped $4.070 to $11.645.

After five straight days in positive territory, natural gas bulls may struggle to keep momentum going amid continued weather model volatility. Though they managed to eke out another substantial price increase on Tuesday, warmer trends in the weather models took a hatchet to early gains. The Nymex January gas futures contract reached a $7.105 intraday high but eventually settled at $6.935/MMBtu, up 34.8 cents on the day.