February Natural Gas Gives Back Gains Early as Weather Models Seen Warmer Overnight

Natural gas futures pared their recent gains early Wednesday as updated weather models moderated for later this month, while in the nearer term, cold was already showing signs of hampering production.

After rallying 21.0 cents in Tuesday’s session, the February Nymex contract was down 14.2 cents to $3.048/MMBtu at around 8:36 a.m. ET.

Both the American and European weather models underwent sizable warmer shifts overnight, according to NatGasWeather.

“The overnight weather data does linger subfreezing air over the northern U.S. Jan. 19-21” but “wasn’t as cold with it or as far south with it,” lowering heating demand expectations, the firm said. “In addition, the overnight data warmed temperatures across the northern U.S. faster for Jan. 22-25.”

In the...