Following a steep loss to start the week, natural gas futures recovered some ground Tuesday and finished ahead on the day as traders bet that recent market selloffs were overdone. This ended a two-day losing streak dating to last week.

Forward Prices

At A Glance:

  • Futures end two-day losing streak
  • Outlooks point to mild weather
  • Global supply challenges remain a wild card

Despite some intraday volatility that pushed futures into negative territory early, the November Nymex contract, a day after dropping 22.0 cents, gained 16.0 cents on Tuesday to settle at $5.505/MMBtu. December rose 16.1 cents to $5.663.

NGI’s Spot Gas National Avg. gained 6.5 cents to $5.130.

The new momentum for futures materialized despite mild temperatures expected across most of the Lower 48 through October and...