Welcome back!

After the slight bump up on Friday, natural gas NYMEX futures inched higher this morning, then continued last week’s sell off. The May front month contract is down 20 cents to settle at $3.32 US/mm.

On the weather front, Canadian temperature forecasts are a bit warmer than earlier predictions. Temperatures are currently normal but are expected to dip briefly this week, especially on Wednesday. They will likely go back to normal by Friday, and will ride the 10-year normal or warmer for the rest of the month. By the end of the month, heating degree days will be so low that we’re nearing the flip to cooling degree days. Meanwhile, Dawn saw withdrawals the past couple weeks as Utilities managed the heating demand, but today injections and withdrawals are flat. There may be some small withdrawals for the chilly weather this week, but injection season is nearly here proper. Lastly, production has bounced up as some maintenance wraps up, but there is still more to go.

Just a bit more cold to go, then Utilities will surely start injecting with both hands while heating demand flattens out.