Natural Gas Futures Surge Nearly 30 Cents as Biting Cold Seen Trapped; Cash Up on Strong Demand

A major shift colder in long-range weather outlooks sparked a massive rebound in natural gas futures on Monday. With the double shot of polar air setting up sustained strong demand and potential production curtailments because of freeze-offs, the March Nymex gas futures contract jumped 28.6 cents to $2.850.

The so-called widowmaker spread, which mostly has traded in contango since December, moved into backwardation on Tuesday, indicating the market is not completely pricing out fears of a storage crunch this winter. The April contract settled at $2.821, up 22.9 cents from Friday’s close.

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