After a double-digit gain to start the week, natural gas futures retreated a bit Wednesday as a majority of the previously reported production decline recovered midweek. With traders eyeing another potential bearish storage injection, the July Nymex gas futures contract settled 2.9 cents lower at $3.075. August fell 3.2 cents to $3.094.

eia storage may 28

At A Glance:

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

Spot gas prices continued to strengthen across most of the country, though Southern California recorded steep losses despite the continuation of record heat. NGI’s Spot Gas National Avg. ultimately went unchanged at $2.850.

As for futures, the July Nymex contract fell early. Though some pullback was expected after the sharp spike on Tuesday, the...