On Tuesday, January Nymex natural gas closed down by -1.65%, falling from a 3-year high due to warmer US weather forecasts reducing heating demand. The negative impact from European gas prices also contributed to the decline. US natural gas prices initially surged to a 3-year high on forecasts of below-normal temperatures in the Northeast and Great Lakes. However, higher US gas production, near a record high, is putting pressure on prices. Despite a bullish EIA report showing a larger-than-expected draw in inventories, gas storage in Europe remains high. The number of active US gas drilling rigs has also increased.

Read more at Yahoo Finance: Warmer US Weather Forecasts Knock Nat-Gas Prices Lower