In a major technical correction, and with a little help from fundamentals, natural gas futures plummeted more than 70.0 cents on Tuesday. After sinking below $7.000 early in the session, the May Nymex contract settled at $7.176/MMBtu.

Henry Hub Prices

At A Glance:

  • Production falls to 97 Bcf/d
  • Forecasts for mixed demand
  • NGI models draw of 41 Bcf

Spot gas prices also hit the brakes, despite the lingering effects of a Nor’easter that set records along its path. NGI’s Spot Gas National Avg. tumbled 55.0 cents to $6.965.

The huge price swings along the futures curve are notable. Importantly, the 70.0-cent-plus decrease at the front of the curve could be a sign that the Nymex strip’s multi-month rally may have reached its peak.

The May contract on Monday hit a fresh 13-year high. However,...