Nymex January natural gas futures deflated further Tuesday amid storage glut woes driven by strong production and the absence of winter weather.

At A Glance:

  • January futures sink another 12.0 cents
  • Mild weather pattern continues
  • Storage surpluses seen widening

The front-month contract closed the regular trading session down 12.0 cents at $2.311/MMBtu, reversing steeper losses to an intraday low of $2.276. February extended the prior day’s retreat by 11.0 cents, ending the day at $2.240.

In its Short-Term Energy Outlook Tuesday, the U.S. Energy Information Administration (EIA) revised its Henry Hub spot gas price 60 cents lower from its November forecast to $2.80 for the titular withdrawal season from November to March.

The downward revision reflected the...