With production strong and demand fading, natural gas futures fell prey to price bears once again.

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At A Glance:

  • NGI models 65 Bcf draw
  • Benign weather in cards
  • Production at 104 Bcf/d

Coming off a 2.8-cent gain on Friday – but eight straight losses prior to that – the March Nymex gas futures contract settled at $1.576/MMBtu on Tuesday, down 3.3 cents day/day.

NGI’s Spot Gas National Avg. shed 1.0 cent to $1.585. This followed multiple declines the prior week.

Production hovered around 104 Bcf/d on Tuesday, according to Wood Mackenzie, down slightly from the prior week but up nearly 5 Bcf/d from a year earlier. Output reached record levels above 106 Bcf/d last year and held strong through early 2024.

Notably, futures climbed about a dime in after hours trading...