After several attempts in recent days, March Nymex natural gas futures finally broke through strong support at $2.000/MMBtu and settled for the first time below the mark since March 2023 at $1.967.

At A Glance:

  • Futures crash through $2 support
  • Below-average storage draw eyed
  • Lower 48 spot prices mostly down

The prompt-month sank as low as $1.956 before ending down 4.2 cents day/day as the market shrugged off outlooks for a mid-February cold spurt and focused on the prospects of a storage glut as heating demand would likely falter through the last half of winter.

“The $2.000 level, generally a source of significant support, was tested multiple times” in Tuesday’s session and “has now broken, which from a technicals perspective is suggestive of further downside,”...