Updated weather forecasts pointed to ongoing mild conditions that would generate a lack of heating demand through the first half of December. The outlook drove January natural gas futures another leg lower, even as the market eyes what could be the first triple-digit withdrawal from inventories of the season in data due out Thursday.

At A Glance:

  • Bearish weather dominates
  • 106 Bcf storage withdrawal expected
  • Cash markets mostly higher

Nymex January futures closed the Monday regular session down 12.0 cents at $2.694/MMBtu. The front-month contract opened the fresh trading week at $2.728, well off the Dec. 1 settlement of $2.814. With little support, the contract managed only a modest lift to an intraday high at $2.752 but finished off the $2.649 intraday low.

Meanwhile, the...