Natural gas futures crumbled further on Monday as weather models continued to warm, perhaps even a bit too much. With production above 100 Bcf/d and Freeport LNG still offline, the January Nymex gas futures contract settled at $5.577/MMBtu, down a jaw-dropping 70.4 cents from Friday’s close. February futures slid 68.5 cents to $5.484.

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At A Glance:

  • More warmth seen in forecasts
  • Storage surplus seen again
  • Permian cash prices negative

Spot gas prices also tumbled everywhere except the West amid higher-than-normal temperatures, along with pipeline maintenance in the Permian Basin. NGI’s Spot Gas National Avg. dropped 30.0 cents to $5.855.

After warming late last week, weather models sapped even more demand from the 15-day outlook. The Global Forecast System (GFS) trended a...