Natural gas futures reversed lower Wednesday as the intensity of frigid temperatures expected into the back half of December moderated somewhat in the latest forecasts. The January Nymex contract plunged 50.5 cents to settle at $6.430/MMBtu.

At A Glance:

  • Profit-taking driven by milder temps, Freeport
  • ‘Potent Arctic blast’ still seen next week
  • Cash plummets as Western hubs volatile

In the physical market, widespread discounts, punctuated by volatility at western hubs, sent NGI’s Spot Gas National Avg. tumbling $4.265 to $9.735.

In the futures market, Wednesday marked a continuation of downward momentum traced back to Tuesday’s session, when January futures had pushed above the $7.00 mark before prices receded.

Alongside signs of somewhat weaker weather-driven...