Natural gas futures, which only last month traded around $6/MMBtu, have steadily lost ground in the new year amid seasonally mild weather and closed near the $3 level on Wednesday. It marked the lowest front-month settlement since 2021.

At A Glance:

  • Prompt month falls 19 cents
  • Supplies strong relative to demand
  • Analysts expect bearish storage print

A day after dropping 18.9 cents, the February Nymex futures contract shed another 19.1 cents day/day and closed regular trading at $3.067. Natural gas for delivery in March lost 14.2 cents to $2.915.

NGI’s Spot Gas National Avg. fell 40.5 cents to $5.320.

Analysts at Goldman Sachs Group said mild January weather to date, combined with robust production levels, spurred enduring concerns about supply/demand imbalance, pushing...