Natural gas futures resumed a downward spiral on Thursday after a hefty but disappointing storage withdrawal failed to impress markets, leaving traders to focus on forecasts for mild weather and diminished demand through January.

At A Glance:

  • EIA prints 221 Bcf draw
  • Production bounces back
  • Demand begins to fade

The February Nymex gas futures contract settled at $3.720/MMBtu on Thursday, down 45.2 cents day/day. March fell 35.4 cents to $3.426.

NGI’s Spot Gas National Avg. followed suit, declining 34.0 cents to $5.030.

The prompt month had mustered a modest gain on Wednesday – its only advance of 2023 so far – but sustained momentum proved elusive following a bearish storage print relative to expectations.

The U.S. Energy Information Administration (EIA) on...