The natural gas storage surplus has dwindled and this has brought fear and uncertainty into the marketplace. Fear and uncertainty usually leads to higher price levels.

While natural gas supplies are sufficient, new weather forecasts calling for severe cold in February are still pushing natural gas prices higher.

With natural gas production more than ample to meet demand, natural gas prices will remain low in 2010.

Physical prices reflect the current colder weather, but natural gas NYMEX prices are taking into account weather forecasts that show that above normal temperatures are just around the corner for the northern part of the U.S.

The natural gas market has been extremely indecisive thus far in 2010. Price rallies or price declines seem to last just one day.

Natural gas prices have rallied on colder weather, but the rally is giving producers an opportunity to hedge their sale price, which will keep production levels higher.

Strengthening El Niño conditions and record-level storage will keep natural gas prices from spiraling out of control.

Natural gas futures prices move in seasonal patterns with significant lows in the first and third quarters of the year and rallies in the second and third quarters.

Given the moderate weather and the state of the economy, natural gas storage

Some producers are looking for significant production declines, while others continue to report a ramping up of drilling activity in 2010. Which is it?

Natural gas prices are expected to remain very weak until there is a shift in temperatures to cause storage withdrawals to occur.

As temperatures have moderated, both cash prices and NYMEX natural gas prices have weakened. However, winter is around the corner so this price weakness is just a temporary situation.

Right now, fear is the primary driver of natural gas prices, but as fears dissipate, natural gas prices will again be poised to fall even if winter is colder than normal.

The price gap between physical natural gas prices and the front-month natural gas NYMEX price was once greater than $2 per MMBtu. That price gap has entirely disappeared as physical prices and NYMEX natural gas prices have converged.

Several nuclear outages and the anticipation of lower storage injection is helping to support physical natural gas prices. However, this is the time for a seasonal rally in natural gas prices so any sort of news tends to be viewed more bullish than bearish.

Tropical disturbances, a lower-than-expected storage injection, and technical short-covering are moving natural gas prices higher. This is the time for a seasonal rally in natural gas prices so any sort of news tends to be viewed more bullish than bearish.

Rising crude oil prices and fears over the upcoming winter continue to push natural gas prices higher. However, with storage inventories already at record levels and three weeks remaining in the injection season, it is only a matter of time before reality replaces these jitters

The colder weather is helping to push up natural gas NYMEX prices and believe it or not, that is actually a good thing.

With the rebound in drilling, the supply/demand balance is not expected to tighten dramatically. Plus, there is plenty of uncompleted wells and shut-in gas that can return to the market to balance supply and demand if needed.

Weakness in the U.S. Dollar is driving crude oil prices significantly higher and this trend isn’t expected to change in the near future. Meanwhile, natural gas prices are paying no attention to this rally.