U.S. natural gas holds near eight-week low due to January warming outlook

U.S. natural gas futures remain around the minimum value of eight weeks. This is due to the fact that extreme cold contributed to the growth of demand for heating. However, the market was able to offset this with a softer long-term outlook. Currently, cold weather persists throughout much of the U.S., but according to forecasts, warming is expected in late December and early January.

The biggest uncertainty for the market is when exactly the restart of the Freeport LNG plant in Texas will take place. Given Refinitiv's data, market participants are considering restarting after small volumes of gas began to flow to the plant for the first time since August. The source also reports that Freeport uses gas to service internal systems at the plant.

According to the company itself, the plant is scheduled to restart by the end of the year, subject to regulatory approval. That said, some analysts say the company needs to do a lot of work to meet the requirements of regulators. That is why they do not expect the Freeport plant to reopen until the first quarter of 2023.