The latest government storage data swiped the rug out from underneath natural gas futures on Thursday, with a larger-than-expected injection highlighting the fragility of the gas market. The July Nymex futures contract settled at $6.239/MMBtu, down 61.9 cents on the day. August futures tumbled 58.9 cents to $6.283.

At A Glance:

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

Spot gas prices were mostly lower despite the continuation of a blistering heat wave. NGI’s Spot Gas National Avg. fell 10.5 cents to $6.395.

With production data fluctuating and weather models maintaining a cooler pattern beginning next week, futures prices were down early. The July Nymex contract opened only a few pennies behind Wednesday’s close at $6.829 but...