Natural gas futures were mixed on Tuesday, with the March contract off slightly amid light volume. But the April contract was boosted by bargain buying and a continued slide in production that could, if sustained, address supply/demand imbalance and bolster prices in the medium term.

At A Glance:

  • Output slips below 102 Bcf/d
  • Solid but brief heating demand
  • Modest storage draw expected

After a 5.6-cent gain the previous session, the March Nymex gas futures contract on Tuesday shed 4.4 cents day/day. It settled at $1.615/MMBtu before rolling off the books. The April contract, however, posted a gain of 6.4 cents to $1.808 and will take over as the front month on Wednesday.

NGI’s Spot Gas National Avg. gained 2.0 cents to $1.390.

National Weather Service (NWS) data showed...