US natgas futures fall on normal weather outlook, eye annual gain

US natural gas futures fell over 58 on Tuesday, pressured by forecasts of above normal temperatures next week, though the market was set for a second consecutive yearly gain led by record gas flows to liquefied natural gas export plants.

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Front-month gas futures for February delivery on the New York Mercantile Exchange traded 20.3 cents lower, or 5.18, to $3.77 per million British thermal units.

The contract was up over 4% so far this year. "The weather factor continues to dominate near-term price direction and with latest updates to the 1-2-week forecasts, some further price 'pressure would appear likely," consultancy Ritterbusch & Associates said in a note.

"Although this week's cold temperatures prompted significant support at the beginning of this week, focus has shifted to next week where above normal temperatures are generally expected across most of the U.S." Meteorologists forecast above normal temperatures nationwide through January 14, with Heating Degree Days falling from 439 on Tuesday to 413 on Wednesday, HDDs measure energy demand to heat buildings.