Another rally today: the NYMEX front month contract got up to $3.57 US/mm in the morning, but sold off in the afternoon to settle at $3.52, just 7 cents up from yesterday. Not a crazy move, but the market is still showing some anxiety as colder forecasts come in and geopolitics remain uncertain.

The consensus for the rally was the weather. The models show the rest of February colder than normal. Looking at the NOAA map, the 8-14 day forecast is still showing below average temperatures, except in California.

The upcoming storage report for the week ending February 7, 2025 is for a withdrawal of -106 Bcf. This would be the smallest withdrawal we’ve seen in a few weeks. Smaller than the 5-year average of a withdrawal of -144 Bcf, but still considerable larger than last year’s actual withdrawal of -60 Bcf.