U.S. natural gas futures took a breather this week, sliding $0.07 (2%) to settle at $3.10 from $3.17 through January 16. While milder temperatures might have eased heating demand, a substantial storage build worked against bullish momentum—the classic bearish combo when supply tightness fades.

Looking ahead, the 12-month spread is flashing sideways signals for Monday's open. That horizontal spread typically signals consolidation rather than directional conviction, suggesting traders are caught between competing forces: weather volatility pushing prices lower, but tightening storage capacity eventually capping downside.

For natural gas watchers, this setup matters. When you see futures grinding sideways on weak technicals, it usually precedes either a sharp breakout or a deeper correction. The storage data will be critical—if builds accelerate into spring, expect continued pressure on near-term contracts.