Natural gas futures hovered close to even early Tuesday as traders contemplated warmer overnight weather model trends against a backdrop of generally impressive forecast January cold. The February Nymex contract was up 1.0 cent to $4.089/MMBtu at around 8:50 a.m. ET.

NGI Morning Natural Gas Price & Markets Coverage

The European weather model trended “notably warmer” overnight, including by showing less cold air advancing into the Lower 48 heading into the final third of January, according to NatGasWeather.

The American model “remained very cold with the pattern” during the Jan. 21-25 time frame, continuing to project “the strongest demand so far this winter season,” NatGasWeather said. The European model “is still chilly” during this stretch but “not by nearly as much this run by failing to advance frigid air...