Fundamentals gained the upper hand in natural gas futures trading on Wednesday, with the July Nymex contract expiring lower amid stubbornly strong production, robust storage levels and lagging LNG demand.

At A Glance:

  • Production steady near 100 Bcf/d
  • Storage surpluses seen holding
  • Cash slides on softening demand

With Texas poised for a break from the triple-digit temperatures that have suffocated the state for weeks, July futures rolled off the board 16.0 cents lower at $2.603/MMBtu. The August Nymex contract settled at $2.668, down 12.1 cents.

Spot gas prices also floundered, with demand softening days ahead of the long holiday weekend. NGI’s Spot Gas National Avg. fell 1.0 cents to $2.690.

Although futures ultimately finished in the red on Tuesday, the losses were...