Natural gas futures dropped back into the red on Wednesday as traders mulled forecasts for mild spring weather and its dampening effect on demand along with polls that showed expectations for only a modest storage withdrawal.

The April Nymex contract declined 3.4 cents day/day and settled at $2.528/MMBtu. May fell 4.2 cents to $2.555.

The prompt month had gained 11.6 cents Tuesday, a rare advance in March, though analysts attributed that bounce in part to technically oversold conditions. Robust liquefied natural gas (LNG) levels – above 11 Bcf/d throughout this week, near records – also provided a boost.

Still, light domestic demand, the key detriment to futures this month, re-emerged as an overriding concern Wednesday. The prompt finished in the red for the ninth time...