July natural gas futures charged like a lion Monday, surging 12.1 cents from Friday’s levels as a historic heat wave continued to smother the Pacific Northwest, leading to pipeline issues and amplified demand. Notable heat also blanketed the East Coast, and with forecasts pointing to more hot weather ahead, the July Nymex contract extended its streak of gains to five days, expiring at $3.617. August, which takes over the prompt-month position on Tuesday, jumped 7.3 cents to $3.593.

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At A Glance:

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

Spot gas prices also continued to strengthen, with prices nearing $7.00 in California and $4.00 in the Rockies. NGI’s Spot Gas National Avg. rose 40.0 cents to $3.775.

The scorching temperatures in...