Natural gas futures continued to slide midweek with the threat of another tropical disturbance keeping traders on guard even amid the ongoing heatwave suffocating much of the Lower 48. The September Nymex gas futures contract settled Wednesday at $2.497/MMBtu, off 6.3 cents on the day. October futures were down 6.0 cents to $2.592.

At A Glance:

  • Hurricane risk in play
  • Weather demand seen sliding
  • Western cash falls further

Spot gas prices were mostly lower, with the significant sell-off continuing in the West. NGI’s Spot Gas National Avg. dropped 9.0 cents to $2.265.

Though the Global Forecast System (GFS) model trended a little hotter on Tuesday and additional cooling degree days (CDD) were seen in the overnight run, the risks of tropical storms hitting the Lower 48 are...