• Natural gas futures retreat as containment risk still on the table
  • LNG demand is on the rise, but power burns are weaker
  • California’s sizzling temperatures spark massive cash rally

After another surprising rally at the end of last week, natural gas futures tapped the brakes Monday as traders appeared less confident in avoiding a storage inventory crunch ahead of winter. The September Nymex gas futures contract hit a $2.396 intraday high before settling the day at $2.339, off 1.7 cents from Friday’s close. October slipped 1.9 cents to $2.476.

Spot gas prices were mostly higher, and especially in California, where sweltering temperatures led to rolling blackouts over the weekend and the power grid remained at risk given persistently hot forecasts. Led by a massive $6.600...