With a flip of the calendar and a notably warmer outlook for June, natural gas futures prices roared back after the Memorial Day holiday weekend. A sharp decline in supply — though seen as possibly temporary — also influenced pricing, with the July Nymex futures contract settling Tuesday at $3.104/MMBtu, 11.8 cents higher than Friday’s close. August jumped 11.9 cents to $3.126.

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At A Glance:

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

Spot gas prices also leapt higher as demand returned following the extended holiday weekend. NGI’s Spot Gas National Avg. climbed 14.5 cents to $2.850.

Bullish momentum has been festering for weeks in the natural gas market, with strong export demand and tepid production growth fueling projections for...