Jeremiah Shelor

Coming off a sharp sell-off the day before, natural gas futures continued to grind lower in early trading Wednesday as the latest forecasts still showed a hot, late May pattern backing off by the start of June. The June Nymex futures contract was down 2.4 cents to $2.589/MMBtu shortly after 8:30 a.m. ET.

After a drop in production helped rally prices to start the work week, U.S. natural gas futures reversed sharply Tuesday amid reports of the interrupted supply coming back online. In the spot market, potential record-setting heat expected in the U.S. Southeast by the weekend proved insufficient as a catalyst for higher day-ahead prices; the NGI Spot Gas National Avg. skidded 3.5 cents to $2.090/MMBtu.

A less than impressive forecast for early June and expectations for another triple-digit storage injection created an opening for bears to extend a recent sell-off in the natural gas futures market Wednesday. In the spot market, sweltering conditions in the Southeast couldn’t stave off widespread discounts; the NGI Spot Gas National Avg. fell 1.0 cent to $2.080/MMBtu.

With the latest forecasts still showing a bearish pattern for the start of June, natural gas futures were trading several cents lower early Tuesday. The June Nymex futures contract was down 3.2 cents to $2.641/MMBtu shortly after 8:30 a.m. ET, reversing off of the prior session’s 4.2-cent rally.

On Monday in the U.S. natural gas spot market, hotter temperatures supported Southeast gains, while price moves were mixed in the West; the NGI Spot Gas National Avg. added 6.0 cents to $2.125/MMBtu.

After a drop in production helped rally prices to start the work week, natural gas futures reversed sharply Tuesday amid reports of the interrupted supply coming back online. In the spot market, potential record-setting heat expected in the Southeast by the weekend proved insufficient as a catalyst for higher day-ahead prices; the NGI Spot Gas National Avg. skidded 3.5 cents to $2.090/MMBtu.

Further demand gains in the weather outlook and reports of supply disruptions helped inspire a natural gas futures rally to open the work week Monday. In the spot market, hotter temperatures supported Southeast gains, while price moves were mixed in the West; the NGI Spot Gas National Avg. added 6.0 cents to $2.125/MMBtu.

Natural gas futures rallied early Monday, boosted by a combination of May heat and supply cuts. The June Nymex contract was trading 5.3 cents higher at $2.684/MMBtu shortly after 8:30 a.m. ET.

Near-term forecasts calling for a mix of heating and cooling demand across the U.S. Lower 48 coincided with a mix of spot price trends Friday; the NGI Spot Gas U.S. National Avg. fell 9.5 cents to $2.065/MMBtu.