Natural gas futures eased lower early Tuesday as traders continued to weigh falling production volumes against weather-driven demand underperformance amid mild March temperatures.

NGI Morning Natural Gas Price & Markets Coverage

The April Nymex contract was off 2.1 cents to $1.895 at around 8:45 a.m. ET. May was trading at $2.042, down 3.1 cents.

The front month surged as high as $1.989 on Monday after EQT Corp. announced a 1.0 Bcf/d production curtailment. The move from the Appalachian natural gas producing giant injected some bullish momentum into a market fretful over excess supplies exiting an exceptionally mild winter.

Still, the 1.0 Bcf/d cut to supply provided by the EQT curtailment has to contend with demand lost amid the relentless warmth on display in revised March forecasts.

“EQT’s announcement of a 1...