March gas settled up almost a percent and a half higher on the day today as Week 2 forecasts trended colder over the weekend and physical gas prices were firm today.
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Yet despite strong cash prices, it was actually the July natural gas contract that logged the largest gain today.
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Futures first bounced on Henry Hub cash prices trading over $2.7 this morning.
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This came following our Morning Update which highlighted "Slightly Bullish" risks for natural gas prices today due to colder long-range forecasts and impressive recent demand.
Long-range GEFS forecasts then maintained these significant cold risks, and though the 12z run lost a few HDDs it still proved to be supportive this afternoon following a solidly warmer operational GFS (images courtesy of Tropical Tidbits).
Traders are also positioning ahead of what should be a large storage withdraw announced on Thursday. Dominion Transmission announced their third largest draw of the season yesterday.
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