Natural Gas Futures Pare Losses Early, Seen ‘Fairly Priced’ in Terms of Fundamentals

Natural gas futures pared their recent losses in early trading Tuesday as March chills, despite moderating in recent forecasts, remained supportive. 

Coming off a 43.7-cent swoon in the previous session, the April Nymex contract was up 5.6 cents to $2.628/MMBtu at around 8:50 a.m. ET.

With technical support from the 20-day moving average at $2.57, and with the temperature outlook into mid-March still supportive for natural gas, Nymex prices could enjoy a “modest recovery,” according to EBW Analytics Group analyst Eli Rubin.

“Although natural gas covered the territory from $2 to $3 — and halfway back again — in under two weeks, it is likely the market will spend several weeks calibrating prices within this wider range,” Rubin said. “While modest short-term upside...