• Expectations eased for a widespread winter freeze 
  • LNG volumes were solid, but lower than January highs
  • Spot prices sputtered amid mild temperatures

Natural gas futures plunged on Tuesday after forecasts over the holiday weekend trended warmer for late January and early next month, diminishing prior expectations for a widespread winter freeze that would fuel robust heating demand.

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The February Nymex gas futures contract settled at $2.546/MMBtu, down 19.1 cents day/day. March fell 16.7 cents to $2.529.

Spot gas prices were also under heavy pressure. NGI’s Spot Gas National Avg. dropped 15.5 cents to $2.690.

Following the shift in forecasts, EBW Analytics Group estimated a cumulative decline of 70.2 Bcf of demand compared to projections prior to the holiday weekend, when...