Huge rally in NYMEX prices today, the January contract ultimately settling 11% up to $4.49 US/MMBtu, and other months across the curve seeing big gains as well. The big noise in the marketplace is that there are some big short term revisions in the various weather models that show a much higher likelihood of colder-than normal temperatures than was initially forecasted, especially in the demand-heavy northeastern US region. After this 6-10 day period though, the likelihood of below normal temperatures reverts back to normal or above normal.
That being said, traders are looking to close their positions in time for the holidays, and market liquidity is starting to get thin. Any swings that happen at this time of year may thus be more than the fundamentals warrant.
Have a lovely holiday season! We will return with market updates on December 29th. Cheers!