Natural gas futures lost momentum on Thursday after a fierce rally that sent the prompt month more than 50 cents higher over the three previous sessions. Traders took profits after weather forecasts shifted cooler and a government inventory report showed a larger storage injection than expected.

EIA storage091021

At A Glance:

  • Production falls to 97 Bcf/d
  • Forecasts for mixed demand
  • NGI models draw of 41 Bcf

The October Nymex contract declined 12.5 cents day/day and settled at $5.335/MMBtu. November also fell 12.5 cents and closed at $5.382.

Cash prices pulled back as well. NGI’s Spot Gas National Avg. shed 19.0 cents to $5.340.

Forecasts backed off “the level of heat projected in the pattern over the next couple of weeks, drastically lowering” expected cooling-degree days without...