After holding steady for several days, production took a tumble on Tuesday and drove a swift rebound for natural gas futures. The Nymex September gas futures contract settled 24.4 cents higher day/day at $7.833/MMBtu. October futures climbed 24.7 cents to $7.825.

Forward Prices

At A Glance:

  • Prompt month settles at $2.846
  • Production strong
  • South Texas leads cash higher

Cash prices also recovered some of the prior days’ losses despite thunderstorms set to ease temperatures across large swaths of the country. NGI’s Spot Gas National Avg. picked up 5.5 cents to $7.900.

Just as natural gas traders had started to gain some confidence that production levels would hold near all-time highs, output plunged 2 Bcf day/day amid maintenance activities in multiple supply basins. Wood Mackenzie said...