As traders continued to read the tea leaves on winter supply dynamics both at home and abroad, a combination of fading weather-driven demand and strong production saw natural gas futures tumble in the market’s return from the Labor Day holiday.

california price graph

At A Glance:

  • Prompt month gains 12 cents
  • Production pressure persists
  • Demand outlook tilts bearish

Extending a 47.6-cent sell-off leading into Labor Day Weekend, the October Nymex contract plunged another 64.1 cents to settle at $8.145/MMBtu Tuesday.

In the spot market, discounts were broadly consistent with the sell-off in the futures market. California premiums continued on blistering heat, but a general downtrend dropped NGI’s Spot Gas National Avg. 31.0 cents to $8.295.

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