Natural gas futures soared Tuesday, extending to three days a heated rally and pushing the prompt month above the $8.00/MMBtu threshold in intraday action. Traders assessed warmer weather patterns, the potential for robust summer cooling demand and vulnerable storage levels.  

Market Image

At A Glance:

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

The June Nymex gas futures contract ultimately closed at $7.954, ahead 47.9 cents day/day. The front month had previously surged above the $8.00 level in early April amid fallout from the war in Ukraine. July jumped 45.9 cents on Tuesday to $8.025.

NGI’s Spot Gas National Avg. soared 76.0 cents on Tuesday to $7.810. Cash prices advanced 50.5 cents on Monday.

Modest U.S. production levels in the wake of...