A mild early December forecast and further evidence of surging domestic production combined to send natural gas futures tumbling early Monday as traders returned from the weekend break.

NGI Morning Natural Gas Price & Markets Coverage

After settling 4.2 cents lower on Black Friday, the December Nymex contract was off another 9.7 cents to $2.758/MMBtu as of 8:42 a.m. ET. January was down 8.9 cents to $2.910.

The front month opened sharply lower after the weekend break and dipped as low as $2.709 in the early morning hours Monday. January, which takes over as the new front month this week, dipped as low as $2.867.

Weather models late last week had trended colder for the back half of the 15-day outlook period, but they reversed warmer over the weekend, according to NatGasWeather.

Near-term conditions were expected to...