Natural Gas Market Talk | 12.27.2024

Natural gas futures gave up ground following the Christmas holiday, with the January NYMEX contract retreating from a brief high above $4.00 per MMBtu. That contract expired on Friday at $3.514 per MMBtu, which is the highest NYMEX expiry since January 2023. Temperature patterns are expected to come in cooler than normal across the eastern half of the U.S. during the first half of January, which should lead to an extended period of heavy demand. Domestic production is showing signs of life, with recent estimates approaching 103 Bcf per day.