The U.S. Energy Information Administration (EIA) reported a pull of 179 Bcf natural gas from storage for the week ended Jan. 7, the largest so far this winter and in line with expectations. Nymex natural gas futures, already down in morning trading following a four-day rally, held deep in the red after the print.

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Ahead of the EIA report, the February contract was down 38.7 cents at $4.470/MMBtu, and the prompt month gave up a bit more ground to around $4.455 when the government data was released. After another 30 minutes of trading, it was at $4.372, down 48.5 cents from Wednesday’s close.

Analysts had anticipated the hefty draw, given freezing conditions over the Midwest and Plains that fueled robust heating demand. The winter conditions stretched as far south as Texas, where...