Natural gas futures struggled to put up more gains on Thursday after traders digested the latest government inventory data. Even with the potential for cold later this month still in play, the January Nymex contract settled at $3.814/MMBtu, off one-tenth of a cent from Wednesday’s close. February, however, climbed 1.0 cent to $3.784.

At A Glance:

  • Storage deficit shrinks
  • Late-December cold still possible
  • Gas prices ‘unlikely’ to return to multi-year highs

Spot gas prices retreated across the board, with milder weather on the way to the East Coast following this week’s cold blast. NGI’s Spot Gas National Avg. dropped 38.5 cents to $3.755.

Widespread, sustained cold has yet to materialize this winter, and the recent blast of frigid air that moved from the Rockies...