Natural gas futures gave up more ground Tuesday despite a bout of near-term heat and a drop in production, extending to four days a string of consecutive losses. The October Nymex gas futures contract shed 3.5 cents day/day and settled at $7.717/MMBtu. November fell 3.2 cents to $7.772.

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At A Glance:

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

NGI’s Spot Gas National Avg. on Tuesday traded sideways. It averaged $7.035, the same as a day earlier.

While heat canvassed much of the Lower 48 on Tuesday, generating another day of late-season demand, EBW Analytics Group senior analyst Eli Rubin pointed to a “relatively soft near-term fundamental outlook” for natural gas.

He said weather-driven demand is on track to decline by the start...