Natural gas futures took a big step down midweek as weather models better aligned in showing more warmth in the forecast for the rest of the month. After a brief slip below $4.000/MMBtu, the March Nymex gas futures contract settled Wednesday at $4.009, off 23.9 cents from Tuesday’s close. April slid 23.8 cents to $3.980.

At A Glance:

  • Another 200 Bcf storage draw expected
  • Deficits could soon stall as temperatures rise
  • Cash bleeds as California issues heat advisory

Spot gas prices continued to soften amid steadily rising temperatures across most of the country. NGI’s Spot Gas National Avg. fell 46.0 cents to $4.155.

After shedding about 88.0 cents from last Thursday’s (Feb. 3) settlement, one may have thought winter was over. However, there are several bouts of chilly...