Boosted by early bargain buying, natural gas futures finished the week with a modest gain, snapping a two-day run of losses. But the front month struggled to muster much momentum amid strong supply levels, rapidly declining demand and weakening cash markets.

At A Glance:

  • Production recovers ground
  • Forecasts further favor bears
  • Stronger injection expected

Following a 12.3-cent sell-off the prior session, the October Nymex gas futures contract on Friday settled at $2.637/MMBtu, up 2.7 cents day/day. 

NGI’s Spot Gas National Avg. fell 10.0 cents to $1.995. It lost 7.5 cents the previous day.

Production, hampered early in the week by maintenance events, recovered to 101 Bcf/d in Bloomberg’s estimate Friday, a gain of about 1 Bcf/d from the prior day. Natural gas output...