Despite forecasts showing July heat easing compared to previous expectations, natural gas futures advanced in early trading Wednesday as analysts continued to see tightness in the supply/demand balance. The August Nymex contract was up 3.0 cents to $3.726/MMBtu at around 8:50 a.m. ET.

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Natural gas prices were “jumpy” in early trading Wednesday, with the August contract “bouncing around a little on either side of the $3.70 level,” Bespoke Weather Services said in a note to clients.

The firm pointed to data showing lower production day/day, with output down to slightly below 90 Bcf/d. Liquefied natural gas feed gas volumes, meanwhile, were back up to 11 Bcf/d in the latest daily estimate, according to the firm.

The supply/demand balance “still is not weakening enough...