Natural gas futures plummeted on Wednesday as weather models indicated that the warmer pattern that emerged following Winter Storm Elliott may stick around a bit longer than earlier projected. Though supply remains suppressed because of freeze-offs, the January Nymex gas futures contract rolled off the board 57.3 cents lower day/day at $4.709/MMBtu. The February contract, which moves into the prompt position on Thursday, tumbled 43.3 cents to $4.685.

At A Glance:

  • Production starting to recover
  • Warm mid-January pattern seen
  • West Coast cash premiums intact

Spot gas prices continued to soften as milder weather spread across most of the country. NGI’s Spot Gas National Avg. fell $2.675 to $6.070.

The change in temperatures following the Arctic blast that blanketed the Lower 48...