A late rally propelled natural gas markets higher after resting in the negatives for most of the trading session. The NYMEX front month rose $0.07 USD/MMBtu or 1.4% to settle at a new three-year high of $5.06 USD/MMBtu. Despite a morning selloff and bearish storage report, markets rebounded in the afternoon as cold weather continues to steer the markets.

Today and tomorrow are expected to be the coldest days in December with average temperatures of 0°C across the US. Algonquin Citygate, the primary pricing point for the northeastern US, spiked to an extreme cash price of $25 USD/MMBtu, and Dawn surpassed $6.20 CAD/GJ. With an average cash price of $5.89 CAD/GJ, December is the most expensive month at Dawn since December 2022.

Today’s EIA storage report showed a 12 bcf withdrawal, 2 bcf lower than the WSJ forecast. The bearish update places lower 48 storage inventory at 3,923 bcf, 12 bcf or -0.5% lighter than last year; and 191 bcf or 5.1% heavier than the five-year average. Remember, this report represents last week’s injection, hence why the withdrawal is so low. Next week’s report will be much more significant following this week’s cold wave. (PB)