March Nymex natural gas futures searched for a bottom but had more downside on Tuesday, sinking another 7.9 cents, strangled by a healthy supply of natural gas and no significant demand for it.

At A Glance:

  • Futures sink 7.9 cents
  • More downside expected
  • Cash markets retreat

The prompt-month contract settled at $1.689/MMBtu, off the $1.654 intraday low, with more losses expected without cold weather to support a boost in demand and trim the natural gas inventory surplus ahead of the injection season.

Gelber & Associates analysts said the natural gas price ran through the $2.000 and $1.800 historical support levels without much effort, “a clear indicator of lack of demand as participants feel little need to buy even at relatively cheap prices.” 

NGI’s Spot Gas National...