Natural gas futures eked out another gain – the fourth in a row – on Monday as robust cooling demand in Texas and surrounding states supported prices. With increased gas flowing south of the border into Mexico as well, the June Nymex gas futures contract edged up 6.2 cents to $2.791/MMBtu.

At A Glance:

  • Cooling demand seen soaring further
  • Storage stocks could approach 4 Tcf
  • Heat, pipeline work lift cash prices

Spot gas prices also bounced at the top of the week, with hefty gains seen in the regions expected to see the most searing temperatures. NGI’s Spot Gas National Avg. rose 42.0 cents to $2.640.

The large rise in cash prices – Henry Hub hit $2.615 – is not completely surprising given the convergence that typically occurs between Henry Hub cash and futures prices...