With natural gas traders attuned to weather shifts heading into the early stretch of winter, an overnight decline in heating demand expectations saw futures reverse lower early Wednesday.

NGI Morning Natural Gas Price & Markets Coverage

The December Nymex contract was down 10.6 cents to $3.469/MMBtu at around 8:45 a.m. ET.

A soaring 22.3-cent rally for the December contract on Halloween coincided with a cold front sweeping through the Lower 48 to drive up heating demand near term. 

EBW Analytics Group analyst Eli Rubin estimated that daily weather-driven demand levels would reach a peak Wednesday before declining by the weekend.

“Momentum reset technicals in a bullish direction, with prices knocking on the door of the 200-day moving average at $3.639,” Rubin said.

Looking at underlying fundamentals, production was...