As the market continued to mull the implications of a rare winter storage build, natural gas futures retreated in early trading Friday. The February Nymex contract was off 12.1 cents to $3.574/MMBtu at around 8:40 a.m. ET.

NGI Morning Natural Gas Price & Markets Coverage

Traders have been left to process the impact on balances of exceptionally mild January temperatures, which resulted in an inventory build in the heart of withdrawal season.

The Energy Information Administration (EIA) on Thursday reported an 11 Bcf injection into U.S. stockpiles for the week ended Jan. 6. Total Lower 48 storage ended the period at 2,902 Bcf, or 40 Bcf below the five-year average.

According to Wood Mackenzie analyst Eric Fell, the latest EIA print came in more than 6 Bcf/d loose/bearish to the prior five-year average relative to degree days...