Milder Weather, Returning Supply Pave Way for More Natural Gas Price Declines

• Natural gas futures continue to retreat on post-storm recovery
• Production, LNG still well off pre-freeze levels
• Cash prices fall further; most locations back below $3

Natural gas futures crashed on Monday as production appeared to be making a quick recovery from the unrivaled Arctic blast that rocked the energy industry last week. Warming weather models also provided a headwind to prices, with the March Nymex gas futures contract tumbling 11.6 cents to settle at $2.953. April slid only 5.5 cents to $2.936.

Spot gas prices continued to fall too on the much milder weather that settled in over much of the Lower 48. NGI’s Spot Gas National Avg. dropped $1.605 to $2.870.

Though likely not at the same level as last week, futures volatility is expected to remain robust in the...