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Despite Colder Turns in Recent Weather Data January Natural Gas Futures Expire Lower Cash Soft

Natural Gas futures rose in the middle of the week as Old Man Winter looked to be getting set to ring in the New Year. Despite the potential of prolonged cold weather, the January Nymex futures contract closed 3.1 cents lower at 4.024 US$/MMBtu. The incoming prompt-month February contract finished at 3.850, 3.5 US$ cents lower than the previous day’s close.

The bulk of the country saw decreased spot gas prices, which were traded on Wednesday for delivery on Thursday and Friday. The National Avg. of Natural Gas I Spot Gas dropped 18.5 cents to 3.860 US$.Weather models turned to the colder side overnight after trending warmer in previous runs, keeping the increased demand in the 15-day prediction in the midday run. On the other hand, The American model turned much colder during the period of January 6-11.

Forecasts indicated that cold air from the Northern Plains will move south through North Texas on Sunday and Monday before migrating east across the northern United States. According to Natural Gas Weather, nighttime lows in some places might go below zero.This is a dramatic contrast to the record-high temperatures reached in Texas this week.

Temperatures had already reached a pleasant 75 degrees Fahrenheit Wednesday morning, which is a startling 30 degrees above typical for late December. Morning lows in the 30s are expected by Sunday.According to Natural Gas Weather, the latest lunchtime GFS forecast projected a softer break beginning next Tuesday and lasting until January 7. However, when the following cold shot arrived on January 7 rather than January 8, it was possible to acquire many heating degree days sooner.

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