US Natural Gas Jumps on Colder Outlook for Last Week of January

By Sing Yee Ong

US natural gas futures jumped as the weather outlook for late January shifted colder, with blasts of Arctic air set to sweep the eastern part of the country, raising demand for the fuel that’s used for heating and power generation.

• Futures for February delivery rose as much as 14% to $3.550/mmbtu in early Asian trading on Monday
• The contract was at $3.479/mmbtu as of 9:15 a.m. in Singapore

Weather:

• A high chance of colder-than-normal weather is expected across the East Coast and Midwest of the country from Jan. 26- Feb. 1, according to an outlook from NOAA
  • See WHUT for a map of latest 6-10 day weather forecast: NOAA
• PJM Interconnection LLC and the Midcontinent Independent System Operator issued alerts to utilities and power generation owners on Friday to brace for increased demand beginning early on Monday
• READ: Biggest US Power Grid Gears Up for Major Blast of Arctic Air

Daily BNEF Gas Data:

• Lower-48 dry gas production on Sunday ~112.4 bcf/day, or +7% y/y
• Lower-48 total gas demand on Sunday ~118.9 bcf/day, or +9% y/y
• Dry gas exports to Mexico on Sunday ~6.1 bcf/day, or +0.5% w/w
• Estimated gas flows to LNG export terminals on Sunday ~19.6 bcf/day, or -0.8% w/w

Gas Market News:

• Philippines Makes Major Gas Discovery in Push to Cut Coal (1)
• LNG WRAP: Cold Snap May Prompt Spot Purchases in Japan, Korea
• Syria Forces Seize Major Oil, Gas Fields, Reuters Reports

Share This:

---

More News Articles