Natural gas futures climbed higher on Tuesday – after surging nearly 80 cents over the two prior sessions – bolstered by sustained heat in the U.S. South and West, as well as deepening European supply distress amid the fallout of Russia’s war in Ukraine.

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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 gained 26.6 cents day/day and closed at $8.993/MMBtu. In early trading it surged past the $9.00 handle. September climbed 25.4 cents on the day to $8.825.

NGI’s Spot Gas National Avg. spiked 59.5 cents to $9.175 on Tuesday amid an ongoing heat wave and production challenges.

The August futures contract expires Wednesday. Typically thin liquidity heading into expiry often opens the...