A down-then-up stretch in the futures market saw natural gas forwards pull back slightly at most Lower 48 hubs during the Aug. 4-10 trading period, although several western hubs enjoyed basis strengthening on upcoming heat, NGI’s Forward Look data showed.

Prices for September delivery at benchmark Henry Hub ended the period at $8.203/MMBtu, a 6.4-cent decline week/week. Modest fixed-price front-month discounts were the norm throughout the Lower 48 during the period.

However, with ample heat in the outlook for the western Lower 48, supply-constrained Southern California hubs bucked the broader trend to post substantial fixed price and basis gains for September delivery.

Futures Swing Higher

A more temperate August forecast for the eastern Lower 48, meanwhile, initially...