Cold Seen Weakening Later This Month as Natural Gas Futures Slide Early

Updated forecasts showing colder temperatures moderating later this month helped to pressure natural gas futures lower in early trading Tuesday. The March Nymex contract was down 7.0 cents to $2.812/MMBtu at around 8:50 a.m. ET.

The American Global Forecast System (GFS) and European weather models both shed heating degree days from their respective outlooks overnight, showing less cold air reaching the United States during the Feb. 21-24 time frame in particular, according to NatGasWeather.

Both models “remain solidly colder than normal and quite bullish for the coming 13 days…by far the coldest period of the past several years,” NatGasWeather said. “However, with the overnight data showing cold air fading quicker for Feb. 21-24, this led to disappointment.

“…Bulls...