The March contract on the New York Mercantile Exchange (Nymex) increased by 18.6 cents, taking over as the prompt-month. This movement comes after the latest weekly storage report indicated sustained high demand during the winter season.
The report showed that storage withdrawals remain robust, reflecting ongoing consumption pressures amid colder weather conditions. Market participants responded to these fundamentals, driving the March contract higher.
**Why this matters**
The prompt-month contract often sets the tone for near-term pricing and market sentiment. Strong winter demand and continued storage draws suggest tight supply conditions, which can influence trading strategies and price forecasts in the energy sector.