A large decline in production fueled a rebound in natural gas futures midweek, with lower wind generation providing additional market support. The July Nymex contract settled Wednesday at $8.696/MMBtu, up an astounding 55.1 cents on the day. August futures climbed 54.8 cents to $8.686.

storage snapshot

At A Glance:

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

Spot gas prices also rallied on robust power burns, with NGI’s Spot Gas National Avg. up 9.5 cents to $8.200.

After coming within an earshot of late 2021 highs after the Memorial Day holiday, production on Wednesday took a nosedive. Though first-of-the-month declines are common, traders took notice of the roughly 2 Bcf day/day drop in output.

Bloomberg data showed big production drops in several...