Natural gas futures rallied on Tuesday, with overall thin liquidity resulting in a likely overdone response to a temporary decline in production. Despite an unsupportive near-term outlook, the November Nymex gas futures contract jumped 36.7 cents to $6.837/MMBtu. December futures climbed 37.1 cents to $7.174.

Northeast Prices

At A Glance:

  • Production at 96.5 Bcf/d
  • Uneven weather outlook
  • Storage situation improves

Spot gas prices rose almost across the board, outside of some continued weakness in Louisiana. NGI’s Spot Gas National Avg. jumped 44.5 cents to $5.195.

With weather not yet moving the price needle decisively in one direction or the other, traders on Tuesday fixated on top day production data that showed a steep 2.4 Bcf/d drop in output. Wood Mackenzie said the declines were...