The Energy Buyer's Guide | 01.21.2025

The natural gas market braced for intense cold and large storage drawdowns.

- NYMEX natural gas for February delivery finished slightly lower after another very volatile week of trading, while deferred futures starting with the upcoming summer continued to trend higher

- Spot natural gas prices surged across the country ahead of the holiday weekend, which included delivery during the most significant cold of the winter so far

- Electricity forwards were higher in every ISO, as most markets anticipate a much higher price environment in 2025 compared to the very low pricing of 2024

- After the current cold snap, temperatures are expected to moderate considerably heading into February, which will likely reduce volatility in spot energy prices