Natural gas on weekly basis rallied by 13.87% boosted by forecasts for freezing winter temperatures and heavy snow across most parts of the U. S. Northeast and the mid-Atlantic states.

· Updated weather forecasting models called for severe cold weather across the eastern U. S. during the next three-to-five days, with heavy snow expected in the Northeast and New England.

· Cities in the Northeast could get 8 to 10 inches of snow with gusty winds and ice cold temperatures, while across the country temperatures will plummet each day through Sunday.

· Bullish speculators are betting that colder weather will increase demand for the heating fuel. The heating season from November through March is the peak demand period for U. S. gas consumption.

· The U. S. EIA said in its weekly report that natural gas storage in the U. S. in the week ended January 17 fell by 107bcf, compared to expectations for a decline of 110bcf.

· Stocks were 598bcf less than last year at this time and 369bcf below the five-year average of 2.792tcf for this time of year.

· The report showed that in the East Region, stocks were 253bcf below the five-year average, following net withdrawals of 67bcf.

· Updated weather forecasting models called for severe cold weather across the eastern U. S. during the next 3-5 days.

· Support also see after the report that Rail companies are hoping to cash in on the U. S. natural gas boom by replacing diesel-burning locomotives with natural gas-burning ones, which could cut fuel costs by 50 percent while reducing pollution.