Blue Monday isn't so gloomy for natural gas traders

Natural gas has had a rough start to the year, but forecasts of colder weather are providing some hope for traders. Today, February natural gas prices rose by 15%, reaching a one-week high. Despite a strong gas withdrawal season, production increases have pushed February prices below $4 and March through May below $3. Looking ahead, there is an expectation of increased demand with new US LNG facilities coming online, although concerns about supply pressures remain. Low oil prices may dampen supply and budgets for drilling, particularly as gas prices stagnate. Furthermore, European nations are wary of potential ramifications from US gas supply, recalling the previous crises involving Russian gas. With key meetings at Davos this week, market reactions are expected, especially with S&P 500 futures down 0.9% and gold hitting record highs amid fears of a fresh EU-US trade war pressing down on the US dollar.