Natural gas futures posted steep gains on Monday, with strength concentrated in winter contracts. The rally was driven by forecasts showing the season’s first round of cooler-than-normal weather moving into the eastern half of the country. December 2026 added 22 cents, marking the largest daily gain for prompt-month gas since September 24. The $3.22 settlement was the highest for December since it rolled to the front of the curve late last month. The balance-of-Winter 2026-27 strip added 17 cents to finish near $3.15, while Summer 2027 increased by 7 cents to end the day at $2.76 per MMBtu.
While the impending cold snap will drive the strongest heating demand of the winter to date, it is expected to be short-lived and is not especially impressive in magnitude. However, with speculative short positions in the futures market reportedly at very elevated levels, the forecast likely prompted some traders to cover their positions and lock in profits, adding momentum to the rally. The expected increase in demand also comes as domestic production has slipped below recent highs and LNG exports remain at record levels, potentially amplifying the market’s response to the colder outlook.
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