Natural Gas Market Updates

January 13, 2025 – Market Update

Quite the start to the week, with the NYMEX Front Month Contract opening at $4.34 US/mm, up 40 cents from Friday, finally breaking above $4 at a price that hasn’t been seen since January 2023. However, the price immediately sold off and hovered around $4.00 until it continued slowly selling off in the afternoon ($3.94 close). This move is likely due to traders being getting short squeezed while the market was thin, and perhaps panicking when they saw the 8-14 day temperature outlook suddenly showing a lot of dark blue.

In other news, the upcoming storage report for the week ending January 10 is for a withdrawal of a whopping -251 Bcf. If true, that would finally push US storage inventories below the 5-year-average. But no reason to panic, we have enjoyed a comfortable surplus of gas this and last year, and it took the work of multiple big cold snaps to get back to near-normal. It would take the rest of the winter being extremely cold for storage to be near empty by the time Spring comes.

8-14 Day Temperature Outlook


NYMEX Natural Gas Front Month

(One Day Delayed)

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