Natural gas futures took a major step back Thursday as an upcoming cold snap was seen not packing quite as much punch as initially expected. Though the latest government inventory data showed continued tightness, the January Nymex gas futures contract settled 24.5 cents lower day/day at $3.731/MMBtu. The February contract dropped 23.0 cents to $3.630.

At A Glance:

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

Spot gas – which traded Thursday for gas delivery through Monday – also plummeted amid a mild near-term outlook that combined with the typical lull in demand seen around the holidays. NGI’s Spot Gas National Avg. tumbled $1.145 to $4.005.

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