Natural gas futures on Monday lost ground, succumbing to weaker fundamentals as production notched another all-time high and early winter warmth deflated demand. The December Nymex gas futures contract settled at $3.264/MMBtu, down 25.1 cents day/day. January fell 23.1 cents to $3.564. 

At A Glance:

  • Front month sheds 25.1 cents day/day
  • Production approaches 105 Bcf/d
  • NGI estimates 9 Bcf withdrawal

The session’s 7% slide followed a topsy-turvy week that saw trading lower three days out of five before finishing up 3.2 cents week/week.

Those gains were fueled in part by last week’s early winter cold freeze, felt as far south as Texas, that may have been enough to tilt gas in storage to its first withdrawal of the season. But the weather has turned warmer and is modeling...