Natural gas futures snapped a five-day rally and plunged in Thursday trading. The October Nymex gas futures contract fell 79.0 cents day/day and settled at $8.324/MMBtu after officials said a railway strike had been avoided and the latest government inventory report proved bearish.

At A Glance:

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

The prompt month had jumped 83.0 cents on Wednesday, the biggest gain in the multi-day rally. The November contract also dropped Thursday, shedding 79.5 cents to $8.372.

NGI’s Spot Gas National Avg. followed suit and fell 49.0 cents to $7.665.

The sell-off came amid reports Thursday that an agreement had been reached to avert a rail workers strike.

“Disrupted freight rail lines could have...