Natural gas futures floundered again Tuesday, as traders looked past bitter cold and blizzards this week and fixated on forecasts for unseasonably mild conditions to close out 2022 and to start the new year.

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At A Glance:

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

Coming off a 74.9-cent plunge in the previous session, the January Nymex gas futures contract shed another 52.5 cents day/day and settled at $5.326/MMBtu on Tuesday. February lost 49.4 cents to $5.216. The slump marked a third consecutive day of steep declines.

NGI’s Spot Gas National Avg. dropped $2.300 on Tuesday to $9.105.

Since Friday, weather models shifted notably warmer for late December and the beginning of 2023, with forecasts showing mild conditions and a sharp...