US natural gas futures rose to around $3.5/MMBtu on Monday, rebounding from a thirteen-week low of $3.10 last week, after the weather outlook for late January shifted colder. Forecasts showed blasts of Arctic air sweeping the East Coast and Midwest from January 26 to February 1. The colder-than-normal outlook is expected to drive strong heating demand and higher power generation needs, prompting PJM Interconnection and MISO to alert utilities to brace for increased consumption early this week. Meanwhile, production remains elevated, while overall demand is slightly higher and LNG export flows are modestly lower, moderating some of the upside. The combination of rising domestic consumption expectations and alerts from grid operators underpins the price gains. Moreover, the cold snap could prompt additional spot LNG purchases in Asia, supporting global natural gas demand.
