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Natural gas stored underground in the Midwest finished winter far above historical norms, reflecting strong production and unusually weak weather-driven heating demand.

Natural gas futures reversed early gains Tuesday as weaker physical prices squashed initial optimism from another producer curtailment to send the prompt contract to its fifth straight decline.

Natural gas futures were mixed on Tuesday, with the March contract off slightly amid light volume. But the April contract was boosted by bargain buying and a continued slide in production that could, if sustained, address supply/demand imbalance and bolster prices in the medium term.

Hamstrung by a growing surplus of natural gas in inventories and with a spring-like February running into a mild March, traders tugged natural gas prices lower for March baseload delivery, according to NGI’s Bidweek Alert (BWA).

With production strong and demand fading, natural gas futures fell prey to price bears once again.

Natural gas futures advanced for a second day Wednesday, supported by oversold technical levels and forecasts “raising alarms” for the return of frigid air in the back half of February.

Spooked by the natural gas market’s third-largest storage withdrawal on record that took a huge bite out of the supply surplus, traders sent February baseload prices higher for several U.S. locations on the first day of bidweek trading, according to NGI’s Bidweek Alert (BWA).

Natural gas futures rallied again on frigid temperatures and mounting heating demand, continuing an uninterrupted stretch of gains that dates to the opening session of 2024.

Natural gas futures failed to sustain Monday’s momentum and finished lower Tuesday after weather forecasts took back some of the latest modeled demand boon for later this month. The December Nymex natural gas futures contract fell 9.1 cents day/day to settle at $3.092/MMBtu. January shed 8.4 cents to end at $3.303.

Natural gas futures found fresh footing early Wednesday, rising 8.0 cents in morning trading, but prices ultimately slumped and the prompt month extended a losing streak to six sessions. Weather forecasts showed more demand in coming weeks and LNG feed gas volumes held strong, but abundant supplies countered.