Temperature Outlook ‘Solidly Bearish’ as Natural Gas Futures Stumble Early

Continued bearishness in the weather outlook saw natural gas futures extend their losses in early trading Tuesday. After tumbling 12.0 cents in the previous session, the October Nymex contract was down 7.2 cents to $4.913/MMBtu at around 8:45 a.m. ET.

In their overnight runs, both the American and European weather models shed degree days for next week, according to NatGasWeather.

Even so, the weather outlook remained “little changed” early Tuesday as models “forecast a solidly bearish pattern the next 15 days, likely longer, as most of the U.S. experiences perfect highs of upper 60s to mid 80s and with coverage of 90s decreasing considerably,” the firm said. 

These widespread comfortable temperatures should allow for “much larger builds into supplies” until colder...