Natural gas futures retreated on Tuesday as traders brushed off a significant drop in production tied to pipeline maintenance. With rain and wind continuing to batter South Texas in the wake of Tropical Storm Harold and a parade of disturbances meandering across the Atlantic, the Nymex September gas futures contract fell 7.2 cents to $2.560/MMBtu. October futures dropped 9.1 cents to $2.652.

California Prices

At A Glance:

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

Spot gas traded sideways on Tuesday, though large discounts across the Western United States sent NGI’s Spot Gas National Avg. down 4.0 cents to $2.355.

With recent cooler trends in the weather data, traders have become increasingly aware of the bearish implications that may lie ahead for gas...