Natural Gas Futures Called Lower Amid Strong Supplies

Natural gas futures lost ground Monday as production held strong and power burns eased following a weekend of regionally milder weather.

At A Glance:

• Output near 101 Bcf/d
• August looks to be hot
• Storage strong

Coming off a 4.3-cent gain in its debut as the front month on Friday, the September Nymex gas futures contract settled at $2.634/MMBtu on Monday, down four-tenths of a cent day/day. October shed 1.2 cents to $2.741.

NGI’s Spot Gas National Avg. inched up a half-cent from Friday to $2.510.

Production hovered around 101 Bcf/d in Bloomberg’s estimate Monday, in line with July highs and within about 1.5 Bcf/d of record levels. 

Wood Mackenzie estimates similarly pegged output at 100.9 Bcf/d, and it noted that power burns for Monday had ticked lower to 44.7 Bcf/d,...