Natural gas futures floundered for a second consecutive session on Monday, as speculative buyers moved to the sidelines following a colossal bull run to start May. A catalyst for that rally – weak production – showed signs of recovery, easing concerns about inadequate supplies to meet extreme heat-driven demand in the South.

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At A Glance:

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

The June Nymex gas futures contract dropped $1.017 day/day and settled at $7.026/MMBtu. The prompt month fell 74.0 cents on Friday. The July contract declined $1.022 on Monday to $7.106.

NGI’s Spot Gas National Avg. lost 75.0 cents to $7.235, marking a second steep drop in as many sessions.

The two-day slump marked a retreat from earlier last week,...