After two days of gains on colder weather model guidance, key models flipped warmer last night and again this afternoon to hit the front of the natural gas strip hard. The March contract sold off the most accordingly, dipping over 4% on the day. 

(Click on image to enlarge)

Later contracts found decently more support overall. 

(Click on image to enlarge)

This sent the April/October contract spread to a new low settle. 

(Click on image to enlarge)

The culprit was primarily overnight weather model guidance that trended far warmer. We outlined this in our Morning Update. 

Afternoon weather model guidance trended warmer as well, leading the Climate Prediction Center to show significantly more Week 2 warm risks in the East. 

Meanwhile, traders were positioning ahead of an EIA print tomorrow that should be quite unimpressive. We saw a far smaller weekly GWDD count than the previous week and it was far more in line with the second gas week of the year. 

(Click on image to enlarge)

The print may be very slightly tighter than the last couple of weeks but still does not appear likely to be impressive. 

(Click on image to enlarge)

This has certainly been an influence in recent gas price action, with the front of the strip appearing particularly heavy over the past couple of weeks as it has struggled to hold onto gains.