Natural Gas Futures Retreat as Warmer Forecast Adjustments, Freeport Outlook Seen Driving Profit Taking

Natural gas futures were down sharply in early trading Wednesday after updated forecasts teased moderating temperatures toward the end of the month. The January Nymex contract was off 33.6 cents to $6.599/MMBtu at around 8:40 a.m. ET. February was down 33.5 cents to $6.398.

NatGasWeather characterized recent declines as traders taking profits following warmer overnight forecast trends. 

News of a lengthy request for information from federal regulators directed at the Freeport LNG terminal may have also contributed downward pressure on prices by raising doubts about a timely restart for the facility, according to the firm.

As for the overnight weather data, both the American and European models trended warmer, including by showing a “not quite as frosty” temperature...