Natural gas futures were volatile Tuesday given continued noise in the weather models, soft production and near-record export demand. After falling to a $3.889/MMBtu intraday low, the February Nymex gas futures contract popped at midday and settled at $4.052, up 2.6 cents from Monday’s close. March climbed 1.9 cents to $3.894.

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At A Glance:

  • Production falls to 97 Bcf/d
  • Forecasts for mixed demand
  • NGI models draw of 41 Bcf

Spot gas prices were mixed amid a brief break from the numbing cold in some parts of the country, but massive, multi-dollar gains in the Northeast lifted NGI’s Spot Gas National Avg. 87.5 cents to $6.535.

Despite a lack of clarity in the long-range weather outlook, there’s no doubt this week is downright bone-chilling across large swaths of the country....