Natural gas futures flopped to start the first full week of September as production held strong and forecasts pointed to waning cooling demand as the month wears on.
At A Glance:
- Production falls to 97 Bcf/d
- Forecasts for mixed demand
- NGI models draw of 41 Bcf
Coming off a cumulative 9% gain over the course of last week, the October Nymex gas futures contract on Tuesday dropped 18.3 cents day/day and settled at $2.582/MMBtu.
NGI’s Spot Gas National Avg., in contrast, inched ahead 2.5 cents to $2.325 amid lingering heat in the South and East. Cash prices lost ground last week.
Production hovered near 102 Bcf/d, according to Bloomberg’s estimate Tuesday. That kept output near records just above that threshold.
At the same time, the weather outlook signaled an...