Having posted sizable gains since late last week, natural gas futures were up a more modest amount through midday Tuesday; traders were left to mull a fundamental outlook headlined by falling supply estimates.

Here’s the latest:

  • June Nymex futures up 1.2 cents to $2.207/MMBtu as of 2 p.m. ET
  • Front month up roughly 20 cents week/week
  • Production down to 94.6 Bcf/d Tuesday, including 970 MMcf/d drop in Permian Basin, according to Wood Mackenzie

Day-ahead prices at West Texas and Southeast New Mexico points fell sharply in Monday’s trading. This coincided with the start of maintenance Tuesday on the Permian Highway Pipeline (PHP), according to the Wood Mackenzie analyst Kara Ozgen.

Maintenance expected to last through Sunday will limit capacity on the intrastate Permian...