Natural gas prices dived lower Monday as traders assessed expectations for warmer weather patterns and the potential for weakening demand over the coming weeks. The March Nymex gas futures contract settled at $4.232/MMBtu, down 34.0 cents day/day. April fell 29.4 cents to $4.198.

Natural Gas Storage

At A Glance:

  • Production falls to 97 Bcf/d
  • Forecasts for mixed demand
  • NGI models draw of 41 Bcf

NGI’s Spot Gas National Avg. dropped $1.885 to $4.735, with substantial losses spread across most regions of the country.

Observers said the sharp futures sell-off was in part because of relief that last week’s Arctic blast of cold was short lived relative to Winter Storm Uri a year earlier. The latest bout of cold appeared likely to have only a transitory effect on production, despite delivering...