After another day of low liquefied natural gas (LNG) demand, natural gas futures buckled in a big way Tuesday as the continuation of weak exports and cool September outlook pressured the market. The October Nymex gas futures contract dropped 10.3 cents to settle at $2.527. November fell a much more modest 1.9 cents to $2.901.

evening markets

Spot gas prices were mostly higher, however, as heat was expected to rebuild on the East Coast beginning Wednesday. NGI’s Spot Gas National Avg. ticked up 2.0 cents to $2.015.

After inspections indicated “no significant damage” to either the Sabine Pass or Cameron LNG terminals following last week’s devastating hurricane, futures traders were optimistic that it was only a matter of time before export demand would increase. However, five days after...