With supply challenges enduring and cooling demand mounting, traders initially shrugged off a modestly bearish government inventory report and drove up natural gas futures much of Thursday.

At A Glance:

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

The August Nymex gas futures contract ultimately fizzled in afternoon trading, though, dipping 8.9 cents day/day to settle at $6.600/MMBtu. September fell 7.8 cents to $6.511.

NGI’s Spot Gas National Avg. gained 19.0 cents to $6.820.

Thursday’s see-saw natural gas futures trade followed a 52.6-cent prompt month surge a day earlier. Analysts attributed that rally – and early momentum Thursday – to production estimates holding close to 95 Bcf this week and forecasts for scalding heat in...