Natural gas futures skidded lower in early trading Tuesday amid a combination of bearish trends in fundamental indicators and potential demand destruction from cooler weather associated with potential tropical cyclone activity in the Gulf of Mexico. 

NGI Morning Natural Gas Price & Markets Coverage

Coming off a 16.8-cent sell-off on Friday, the July Nymex contract was down 20.3 cents to $8.524/MMBtu at around 8:55 a.m. ET.

There were a number of bearish developments impacting natural gas prices in the near-term as of early Tuesday, including “notably higher” production and a drop in liquefied natural gas (LNG) feed gas demand, EBW Analytics Group told clients.

The increasing production over the Memorial Day weekend coincided with “easing pipeline maintenance,” EBW senior analyst Eli Rubin said. “In less than two...