Natural Gas Futures Flounder Even As Cold Front Approaches, Cash Prices Strengthen

Traders sent natural gas futures lower on Tuesday, even as production declined and weather forecasts pointed to stronger consumption. The February Nymex gas futures contract settled at $3.258/MMBtu, down 18.9 cents day/day. March shed 16.5 cents to $3.057.

At A Glance:

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

NGI’s Spot Gas National Avg., in contrast, gained 36.5 cents to $5.725 as new cold fronts formed and threatened to drive fresh rounds of heating demand.

The outlook Tuesday from Maxar’s Weather Desk showed below-normal temperatures blanketing much of the Lower 48 in the six- to 10-day and 11- to 15-day periods.

For the 11- to 15-day window, models trended colder over the prior 24 hours, according to the forecaster. The...