Natural gas futures fell on Monday for a third session, undermined by tapped down demand forecasts for this week’s cold and production volumes near or at new all-time highs. The December Nymex natural gas futures contract settled at $2.882/MMBtu, down 7.8 cents from Friday’s settlement. 

At A Glance:

  • Prompt month falls for third session
  • Production above 105 Bcf/d
  • NGI models 4 Bcf injection

NGI’s Spot Gas National Avg. rose 13.0 cents to $2.800, led higher by a price surge in West Texas where Permian Basin output is pacing near record levels despite maintenance and as a major artery to the West prepares to ramp up an expansion.

Futures’ selling pressure came after the latest weather model runs shed heating degree day (HDD) demand estimates since Friday, NatGasWeather...