Natural gas futures soar as freezing winter weather moves across the U.S., with prospects of cold blasts lifting demand and shutting in some production. Natural gas for February delivery is up 13.4% at $3.378/mmBtu, a two-month high.
The colder forecasts with a deep freeze moving as far south as central Texas “will definitely show some large pulls to storage in the next couple of weeks,” BOK Financial’s Dennis Kissler says in a note. “But I believe the rally this morning is more about short covering (large short spec positions getting out) than it is about new fundamental buying.”
Natural Gas Prices Extend Rally As Cold Weather Hits
Natural gas futures extend their rally as long-awaited winter weather moves across the U.S., raising expectations of bigger draws on inventories to reduce storage surpluses. Natural gas for February is up 4.2% at $3.102/mmBtu, its highest level since mid-November.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
