The NYMEX March natural gas futures contract settled at $2.503/MMBtu Tuesday, 21 cents below its $2.713/MMBtu close on Monday.
The contract's losses came on the wave of selling that is mostly related to recent weather forecasts, "which show that the Northeast will not get a significant shot of cold in the next 10 days," said Gelber & Associates analyst Kent Bayazitoglu.
According to analysts, the market has refocused from possible production cutbacks to a storage surplus.
"Consideration of season-ending totals should give potential buyers pause, particularly with inventories and production still running at record highs and no extreme cold on the horizon," said Kilduff Report analyst Mike Fitzpatrick.
The March contract traded between $2.480/MMBtu and $2.689/MMBtu Tuesday.
