Weather Outlook Is Unfavorable And What It Means For Natural Gas

On Jan 15, we wrote a NGF titled, "Spilling Cold Water." Just before we published that report, we issued a trade alert notifying our subscribers that we are long KOLD. As of this writing, we remain long KOLD and believe that with the incoming weather setup, natural gas prices have more room to the downside in the next 1-2 weeks.

A Cold January

January 2025 is one for the record books. According to Commodity Wx Group, this January was the 3rd coldest January of the 2000s.

Source: CommodityWxGroup

However, according to the latest ECMWF-EPS weekly outlook, February is expected to be warmer than normal.