After a bit of hesitation, natural gas futures notched another day in the green as production declined and weather models aligned in showing a cooler-than-normal pattern that would keep hefty storage deficits intact throughout the month. The May Nymex contract settled at $6.680/MMBtu, up 3.7 cents day/day. June futures climbed 4.0 cents to $6.763.

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At A Glance:

  • Production at 96.5 Bcf/d
  • Uneven weather outlook
  • Storage situation improves

Spot gas prices also continued to strengthen, with several locations nearing the $7.000 mark. NGI’s Spot Gas National Avg. rose 16.0 cents to $6.365.

After surging more than 35.0 cents on Monday, bullish momentum along the Nymex futures strip continued early in Tuesday’s session. Fueling the early rally was a sharp 2 Bcf day/day drop in...