US natural gas futures fell more than 3% to $4.82 per MMBtu, pulling back after a record-breaking three-day rally that saw prices surge about 63%, as traders reassessed positioning ahead of a historic winter storm. Prices remained on track for their largest weekly gain on record, up more than 55% based on data going back to 1990. Forecasts for widespread below-normal temperatures across most of the US are expected to sharply lift heating demand and accelerate storage withdrawals. The developing freeze, particularly across southern gas-producing regions, has raised concerns that ice could form inside pipelines, disrupting production and exports. The latest storage report showed inventories fell by 120 billion cubic feet to 3.065 trillion cubic feet, a larger draw than estimates but still below the five year average, leaving stockpiles 6.1% above normal. Analysts expect the next report to show a far larger withdrawal as the cold intensifies.
