Natural gas futures rebounded early Wednesday as production dropped and near-term cooling demand remained elevated. The prompt month, however, slipped lower by midday as traders digested expectations for a stout storage injection, and it struggled to regain momentum.

At A Glance:

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

The August Nymex gas futures contract ultimately fell 1.3 cents day/day and settled at $5.510. September shed a half-cent to $5.482/MMBtu.

NGI’s Spot Gas National Avg. lost 10.0 cents to $5.660.

While national demand is expected to ease to near normal July 15-17, NatGasWeather said the next several days remain on track to deliver continued intense heat across a majority of the Lower 48, with highs of upper 80s to...