The changes in supply and demand that brought natural gas futures down a few notches to start the week provided some uplift to the market on Tuesday. A large decline in production, though likely temporary, along with a warmer turn in the latest weather models sent the July Nymex gas futures contract up 6.7 cents to settle at $3.258. August climbed 6.2 cents to $3.277.

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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 rebounded, but gains were mostly small. NGI’s Spot Gas National Avg. rose 2.0 cents to $3.095.

As for weather, the forecast was only slightly hotter early Tuesday, adding a couple gas-weighted degree days to the 15-day forecast, according to Bespoke Weather Services. However, this kind of small...