After a 30.5-cent decline midweek, natural gas futures continued to retreat Thursday as traders failed to sustain early momentum after the latest government inventory data. With the midday weather models adding further bearishness to the supply/demand balance, the January contract settled at $6.738/MMBtu, off 19.2 cents day/day. February futures slid 18.7 cents to $6.631.

At A Glance:

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

Spot gas prices cratered as temperatures started to warm up across the United States. With powerful winter storms still pounding the West Coast, however, NGI’s Spot Gas National Avg. fell 33.0 cents to $7.525.

Fresh off a nosedive on Wednesday – driven in part by near-record production – natural gas futures...