Natural Gas Futures Extend Slide Despite ‘Solidly Cold’ Temperature Outlook

Coming off a stretch of wild volatility, natural gas futures extended their recent losses in early trading Friday as forecasts hinted that cold might fade at the end of the month. The February Nymex contract was down 8.6 cents to $4.184/MMBtu at around 8:55 a.m. ET.

Bespoke Weather Services characterized the recent tumble in natural gas futures as a “mysterious freefall,” one not justified by any changes in forecasts.

As of early Friday the European model had shown a “shift toward less intense cold in the medium range” over the previous 24 hours, the firm said.

“The forecast remains solidly cold, though the ends of the runs do show a distinct lessening in intensity,” Bespoke said. However, updated forecasts still featured “Alaskan ridging as well as some attempt...