The lack of clarity on the duration of a production disruption in the Northeast continued to cause some fireworks in the natural gas futures market on Friday. Despite early weakness stemming from cooler weather forecasts ahead of the Independence Day holiday weekend, the August Nymex futures contract climbed another 3.9 cents to settle at $3.700. The September contract edged up 3.6 cents to $3.668.

northeast production

At A Glance:

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

Spot gas prices, which traded for delivery through Tuesday, fell for a third day at the majority of North American pricing hubs. Cooler weather in some regions, a tropical threat for the Gulf of Mexico (GOM) and the typical lag in holiday demand combined to send NGI’s Spot Gas National...