Natural gas futures surged on Monday as a new tropical storm threatened to further shake the Gulf of Mexico’s (GOM) production foundation, a development that could hamper supply/demand balances at a time when gas in storage for winter is already light.

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At A Glance:

  • Nicholas threatens output
  • GOM production still off
  • Cash prices climb

The October Nymex contract cruised 29.3 cents higher day/day and settled at $5.231/MMBtu. November gained 30.0 cents to $5.273.

NGI’s Spot Gas National Avg. spiked 36.5 cents to $5.225. Hubs across the country posted double-digit gains.

Tropical Storm Nicholas formed Sunday and arrived in the GOM on Monday as production in the region was still reeling from the aftershocks of Hurricane Ida. According to federal estimates, more than one-half...