Natural gas futures pulled back Tuesday after mid-range heat forecasts eased slightly and a new outlook called for record production on the horizon, ending a rally that had been fueled by sizzling summer heat.

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At A Glance:

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

The August Nymex gas futures contract settled at $7.264/MMBtu, down 21.5 cents day/day. September fell 23.2 cents to $7.150.

The prompt month had gained nearly 88 cents over the two previous regular trading sessions amid widespread high temperatures in the 90s and 100s.

NGI’s Spot Gas National Avg. forged ahead Tuesday, rising 18.5 cents to $7.930 after bigger gains in recent days.

“The overnight data did back off slightly on the amount of heat across the northern...