Natural gas futures plummeted on Tuesday as domestic production held strong and storage levels were projected to prove ample for winter, while forecasts pointed to soft weather-driven demand in both the United States and Europe.

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At A Glance:

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

The December Nymex contract dropped 44.8 cents day/day and settled at $4.979/MMBtu. January fell 43.5 cents to $5.070. Tuesday’s trading marked a third consecutive day of declines for futures.

NGI’s Spot Gas National Avg. shed 38.0 cents to $4.690.

Though prices have descended in recent days, they soared most of this year amid worries about inadequate supplies. With winter on the horizon, Lower 48 producers responded with increased output in...