Natural gas futures rose on Monday as traders reacted to news of increased activity at Freeport LNG in Texas and the possibility of a cold snap in the near future. Meanwhile, cash markets were mixed.
At the close of trading, natural gas futures for December delivery were up 2.6 cents, or 0.9%, to $2.931 per million British thermal units (MMBtu).
The bullish sentiment in the futures market was due to news that Freeport LNG is expected to begin its first liquefied natural gas (LNG) export operation in the coming days. This increased activity could lead to increased demand for natural gas, which could boost prices.
In addition, traders are also keeping an eye on the weather, as forecasts are calling for colder temperatures in the coming weeks. This could lead to increased demand for natural gas as consumers turn up the heat to stay warm.
Meanwhile, cash markets were mixed on Monday. Prices in the Northeast were down compared to the previous day, while prices in the Midwest and South were up.
Overall, natural gas futures were higher on Monday on news of increased activity at Freeport LNG and the possibility of a cold snap in the near future. Cash markets were mixed, however, as prices in different regions moved in different directions.