Natural gas futures were down sharply in early trading Thursday, with analysts attributing the move lower to broader economic factors, even as projected weather-driven demand increased overnight. The September Nymex contract was down 7.3 cents to $3.779/MMBtu at around 8:50 a.m. ET.

NGI Morning Natural Gas Price & Markets Coverage

EBW Analytics Group analysts said after hours selling for natural gas occurred “when the oil market and equities sold off sharply in response to Fed notes indicating that tapering is likely to begin later this year.”

Natural gas prices remained under pressure into the morning hours even as the latest weather data showed cooling degree day gains, the analysts said.

Models shifted hotter overnight by showing weaker cooling in the eastern United States toward the end of August, according to...