Natural Gas Futures Pare Losses Early as Analysts See Upside for Prices Following Sell-Off

After suffering heavy losses in the previous session, natural gas futures recovered a few cents in early trading Tuesday amid mixed trends in forecasts overnight. Coming off a 16.9-cent sell-off Monday, January Nymex futures were up 3.8 cents to $2.444/MMBtu at around 8:50 a.m. ET.

Trends in the overnight guidance were mixed, with the American Global Forecast System adding some heating degree days (HDD) to the outlook but with the European modeling dropping HDD, according to NatGasWeather.

Both models remained “quite bearish” in their projections for the next 15 days outside of a three-day period early next week when “a cold shot exits the west-central U.S. and tracks across the East,” the firm said. Otherwise, “the coming upper pattern will be warm to much warmer...