Natural gas futures rallied for a second day on Friday as the potential for supply constraints outweighed mild autumn weather and modest near-term domestic demand. Impending front-month expiration also factored in, analysts said.

forward curve

At A Glance:

  • Futures surge a second straight day
  • Domestic weather demand tapers
  • Global supply challenges in focus

The October Nymex contract climbed 16.4 cents day/day and settled at $5.140/MMBtu. A day earlier, the prompt month advanced 17.1 cents. November gained 15.7 cents to $5.200 on Friday.

NGI’s Spot Gas National Avg., however, shed 11.0 cents to $4.605 on Friday, dragged lower by weakening weather demand.

EBW Analytics Group noted that buying ahead of prompt month expiry is common, and this likely helped foster futures...