U.S. natural gas dropped 9% due to milder weather in January

U.S. natural gas futures fell about 9% to a seven-week low on Tuesday. This drop occurred amid forecasts about warming in late December and early January. It’s noteworthy that the drop in prices came despite increased demand for heating due to an expected cold snap by next week. 

U.S. gas futures remain extremely volatile this year. The restart date for the Texas LNG plant remains unknown. However, according to data provider Refinitiv, gas began flowing into Freeport on Tuesday for the first time in months. Market participants say Freeport is likely using the gas to fuel an on-site power plant. However, it could also be a sign that operations at the plant will resume soon.

After several delays from October through November and December, the company has announced several times this month that it may restart the plant by the end of the year.