At A Glance:

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

Natural gas futures tumbled early Wednesday, threatening a second day of losses, but prices rebounded in afternoon trading as new data showed production declined, exports climbed and weather forecasts pointed to strong cooling demand in the weeks ahead.

The July Nymex contract settled at $3.251/MMBtu, up 1.1 cents day/day. It marked the sixth day of gains over the past seven trading sessions. August rose 1.5 cents to $3.271.

The prompt month dropped 11 cents on Tuesday, ending a five-day rally, but analysts chalked it up to futures reaching technical resistance. It “occurred even though near-term supply/demand fundamentals were largely unchanged — a clear indicator that...