Markets

January natural gas prices in the U.S. Northeast shed as much as 61 cents for the period between Dec. 4 and 10 as forecasts continue to be more reflective of spring temperatures than winter.

Natural gas for weekend and Monday delivery traded sharply lower Friday as traders saw little need to commit to three-day deals, and at the same time weather forecasts in major metropolitan markets called for temperatures to flirt with record highs.

January natural gas is expected to open 5 cents lower Friday morning at $1.96 as the persistent drumbeat of mild temperature forecasts continues to overwhelm fundamental market shifts. Overnight oil markets fell.

January natural gas is expected to open unchanged Thursday morning at $2.06 ahead of a government storage report that is expected to show gas usage right at long-term norms. Overnight oil markets were mixed.

Natural gas futures scooted higher after the Energy Information Administration (EIA) reported a storage draw larger than what traders were expecting.

In physical trading Thursday for Friday delivery, natural gas market points in the crosshairs of a broad storm system expected to rake the Rockies and move eastward proved resilient as other points weakened.

January natural gas is set to open 3 cents higher Wednesday morning at $2.10 as traders combine oversold market conditions with a dose of cooler temperatures expected by the end of the week. Overnight oil markets rose.

Physical natural gas for Thursday delivery managed a small advance in Wednesday’s trading as gains in California, the Rockies and the Midcontinent more than made up for losses in the Northeast. Temperature forecasts continue to be the 800-pound gorilla in the room, and by Friday highs in both New York and Chicago are expected to be more than 15 degrees above normal.

January natural gas is set to open 4 cents lower Tuesday morning at $2.03 as traders study forecasts calling for mild temperatures in eastern and Midwest markets out to Christmas. Overnight oil markets continued to weaken.