Signs of production freeze-offs helped natural gas futures to slow their downward trajectory in early trading Tuesday in the face of more mild winter weather expected later this month. 

NGI Morning Natural Gas Price & Markets Coverage

Coming off a 17.2-cent decline in the previous session, the March Nymex futures contract was off 3.6 cents to $2.641/MMBtu at around 8:50 a.m. ET.

The March contract was holding its ground early Tuesday, drawing support from near-term heating demand and from production freeze-offs coinciding with “moderate” winter weather in Texas, according to EBW Analytics Group.

“An encroaching storm across Texas is leading to early cycle indications of production freeze-offs, with dry gas production nationally already 2.5 Bcf/d off mid-January highs on Monday and early indications of another 2 Bcf/d...