• Forecasts for heat held, but Monday’s rally was overcooked
  • With summer near, futures are on the cusp of sustained higher prices
  • Cash prices lost momentum, led lower by declines in Texas

Natural gas futures on Tuesday gave back a big chunk of the gains made in a weather-driven surge a day earlier. Analysts said forecasts remained bullish for gas demand, but the Monday rally was overcooked and traders responded by taking profits the next day.

California Prices

The June Nymex contract dropped 9.7 cents day/day and settled at $3.012/MMBtu. A day earlier, the prompt month surged nearly 15 cents. July fell 8.6 to $3.078 on Tuesday.

NGI’s Spot Gas National Avg. declined 2.5 cents to $2.810.

The most intense heat currently in the 15-day forecast lies early next week, and analysts look for...