The forecast for next week was higher than LSEG’s outlook on Monday. Meanwhile, meteorologists forecast weather across the country will remain mostly warmer than normal through January 7, keeping the amount of gas needed to heat homes and businesses lower than usual for this time of year.
“We saw the significant sell off due to the warm up that we’re experiencing right now. But, as we go to later January, the weather models are turning colder again and that’s causing some short covering,” Flynn said.
Financial firm LSEG said average natural gas output in the lower 48 US states climbed to a record high of 111.1 billion cubic feet per day in December, surpassing November’s monthly record of 109.6 bcfd.