After sinking 15.5 cents in the Nov. 24 session, NYMEX December natural gas futures reversed course Monday, Nov. 27, to end the day more than 11 cents higher amid technical buying and short covering ahead of options expiration at the closing bell.
Moving from $2.876/MMBtu to $2.944/MMBtu on the day, December natural gas futures, which expire at the close of business Tuesday, settled at $2.928/MMBtu, rising 11.5 cents. Trading from $2.971/MMBtu to $3.037/MMBtu, the January 2018 natural gas futures contract settled at $3.017/MMBtu, up 10.1 cents.
Increasingly colder weather is on the horizon as the calendar officially turns to winter shortly, which should lead to larger gas storage withdrawals in the weeks ahead, a factor that also offered upside traction for the natural gas futures market Monday.
For the week ended Nov. 17, the U.S. Energy Information Administration reported a net 46 Bcf was pulled from storage, leaving total U.S. working gas at 3,726 Bcf, or 319 Bcf below the year-ago level and 121 Bcf below the five-year average of 3,847 Bcf.
Current outlooks from market analysts and traders for the upcoming natural gas storage report from the EIA that will cover the week ended Nov. 24 are calling for an average pull in the mid-40s Bcf. The latest figure will compare to a 43-Bcf year-ago pull and the 47-Bcf five-year average withdrawal.
In the near to medium term, above-normal temperatures are projected to encompass the major heat-consuming regions in the central and eastern U.S. and suggest limited natural gas demand for heating.
In its six- to 10-day outlook, the National Weather Service expects above-average readings across the entire eastern two-thirds of the country and in regions of the Rockies. Normal to below-normal temperatures are projected for the West Coast.

In the agency's eight- to 14-day forecast, normal to above-average temperatures are eyed for much of the country, including fringes of the west-central U.S. Below average readings are seen for the West, south-central U.S and Texas through the extended period.

In step with the recent sideways movement in futures, next-day natural gas prices at the major U.S. consuming hubs were mixed Monday.
At the Transco Zone 6 NY hub in the Northeast, spot gas was priced around $2.75, down about 25 cents. Farther south, day-ahead gas at Tetco-M3 came in around $2.40, losing 30 cents.
In the Gulf Coast producing region, gas for Tuesday flow at the benchmark Henry Hub in Louisiana eased 15 cents to 20 cents to an average near $2.80. Waha gas was marked at an index around $2.50, for a daily gain of 5 cents.
In the Midwest, product at Chicago was assessed at an average of about $2.70, slipping around 15 cents on the session. Demarc spot gas was down about 10 cents to an average above $2.60.
On the West Coast, natural gas prices at PG&E Gate saw an index near $3.05, increasing 10 cents. Spot gas at the SoCal Border was quoted at an average near $2.75, rising about 20 cents.
Market prices and included industry data are current as of the time of publication and are subject to change. For more detailed market data, including power and natural gas index prices, as well as forwards and futures, visit our Commodities pages.
