Natural gas futures dived lower Wednesday even as demand for U.S. exports held strong, forecasts called for the harshest freeze of the winter and analysts expected a hefty storage withdrawal. The February Nymex gas futures contract lost 25.2 cents day/day and settled at $4.031/MMBtu. March fell 20.3 cents to $3.845.

At A Glance:

  • BREAKING: U.S. EIA reported a 206 Bcf withdrawal from storage for the week ending Jan. 14, a steeper pull than the market was expecting
  • U.S. exports hover near record level
  • Arctic blasts to drive more demand

Cash markets moved in the opposite direction as near-term demand loomed large. NGI’s Spot Gas National Avg. jumped $1.010 cents to $6.520.

The latest forecasts pulled back modestly from expectations earlier in the week for a bitter cold pattern...