Natural gas futures forged higher most of Friday, lifted by supply concerns, steady domestic demand and a broader rally in commodities. Traders took profits in the final hour of the session, however, and the August Nymex contract shed 1.4 cents day/day to settle at $3.674/MMBtu. The prompt month had spiked 9.2 cents a day earlier.

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At A Glance:

  • Production falls to 97 Bcf/d
  • Forecasts for mixed demand
  • NGI models draw of 41 Bcf

September lost 1.0 cent and closed at $3.657.

NGI’s Spot Gas National Avg. added 4.0 cents to $3.565 as cooling demand held strong amid punishing heat and drought across the West.

Production hung around 91 Bcf on Friday – below recent highs near 93 Bcf. This added to worries that demand could outstrip supply should impressive summer heat continue...