Natural gas futures faltered Thursday following a bearish storage report and a key weather model pointing to lighter heating demand than previously expected, ending a rally.

EIA storage Jan 22

On its first day as the prompt month, the March Nymex gas futures contract shed 3.8 cents day/day and settled at $2.664. It ended a three-day run of solid gains for the prompt month. April lost 4.5 cents to $2.675.

“The end of the winter curve is trading below the front of the summer curve, and has been since Dec. 8,” indicating that, despite the recent rally, cold weather has fallen short of expectations this winter, said Mizuho Securities USA’s Robert Yawger, director of energy futures.

NGI’s Spot Gas National Avg. kept a five-day win streak alive Thursday, rising 5.0 cents to $3.420, after...