Natural Gas Futures Extend Slide as Weather into Early February Seen Strongly Bearish

Natural gas futures continued to face bearish headwinds early Friday from forecasts suggesting a warm-dominated Lower 48 pattern for late January could extend into early February. The February Nymex contract was off 9.3 cents to $2.604/MMBtu at around 8:50 a.m. ET.

Weather data trended warmer overnight, including a sizable drop in projected heating demand from the American model, according to NatGasWeather.

The dataset shifted warmer for the Feb. 1-3 time frame, advertising conditions that now leaned bearish “after teasing it would be closer to seasonal a few days ago,” the firm said.

Overnight forecasts continued to show a “very warm U.S. pattern” starting next week and extending through the end of the month. That is expected to yield “exceptionally light” demand...