Natural gas futures rallied again on Tuesday, gaining ground amid near-term weather demand and despite expectations for a festering supply glut through the spring shoulder season.


At A Glance:

  • Prompt month adds 2.5 cents
  • Gas production remains lower
  • Heating demand spreads east

Following a 7.4-cent rally on Monday and gains late last week, the May Nymex gas futures contract settled at $1.862/MMBtu, up 2.5 cents day/day.

NGI’s Spot Gas National Avg. rose 5.0 cents on Tuesday to $1.505. The average had bounced 14.0 cents higher the previous day as winter-like chills permeated the Northern Plains and Upper Midwest. Such conditions were moving east Tuesday.

NatGasWeather noted that production readings were lower to start the week – Wood Mackenzie pegged output at 98 Bcf/d...