Natural gas futures continued to skid lower in early trading Tuesday, weighed down by bearish technical factors and an ongoing lack of impressive cold in the latest forecasts.
After dropping 11.4 cents before the weekend, the March Nymex contract was down another 9.4 cents to $2.181/MMBtu at around 8:45 a.m. ET.
Friday’s 11.4-cent sell-off saw the front month break below “critical technical support” at the $2.35 level, EBW Analytics Group analyst Eli Rubin observed.
A notable decline in weather-driven demand over the holiday weekend “coupled with a strongly bearish technical outlook opens the door to further losses,” Rubin said.
This comes as upcoming Energy Information Administration (EIA) storage reports are poised to reveal a growing storage cushion on...