Natural gas futures sank below $3.000/MMBtu on Tuesday as markets looked past the immediate brutal cold to an expected warm-up in temperatures next week as indicated by increased confidence in weather models.

At A Glance:

  • Brutal cold to last into weekend
  • Production drops to 92.4 Bcf/d
  • NGI models 165 Bcf draw

The February Nymex natural gas futures contract fell 41.3 cents day/day to settle at $2.900. The prompt-month held above the $3.000 level in overnight trade before plunging in the morning. The contract fell lower in the afternoon after a mid-day bounce failed to retake the $3.000 level.

NGI’s Spot Gas National Avg. fell $10.550 to $6.220, with prices lower in all regions except the Northeast, with its system showing strain amid high heating demand.

The sell-off in...