A weak December heating demand outlook, set against a backdrop of robust production figures, continued to take a toll on natural gas futures heading into the front month expiry Tuesday.

NGI Morning Natural Gas Price & Markets Coverage

The expiring December Nymex contract was off 2.4 cents to $2.770/MMBtu as of 8:41 a.m. ET. January was trading at $2.934, down 1.2 cents.

The front month expiration could set the tone for trading Tuesday, according to EBW Analytics Group analyst Eli Rubin.

This comes as market participants continue to mull what daily estimates indicate has been considerable production growth through the early stretch of the heating season.

“Pipeline nominations suggest that yesterday may have again raised the bar on dry gas production,” Rubin told clients early Tuesday. “The conclusion of another...