As February starts to wrap up, so do the cold temperatures. It is currently 4 degrees in Toronto, with expectation that it will be above zero for the next few days. NOAA’s Temperature Outlook is also showing normal and warmer than normal temperatures going into early March.
As a result, prices are down. The NYMEX front month contract is down 24 cents to ~$4 US/mm.
Whether or not temperatures remain mild in March is up in the air. Most forecasts are predicting a normal or warmer month, but we have seen some meteorologists also expecting blocking and cold temperatures to drag winter out. Seems like so far, the market has relaxed a bit.
Initial expectations are for a withdrawal of -248 Bcf out of the lower 48’s storage over last week, another massive withdrawal this season, but possibly one of the last big one if temperatures stay warm.
