Natural gas futures pumped the brakes on their modest three-day rally Tuesday as traders eyed the potential demand destruction that could be imposed in the near term by Hurricane Idalia. On its final day on the Nymex futures curve, the September contract rolled off the board at $2.556/MMBtu, down 2.3 cents on the day. October futures slipped three-tenths of a cent to $2.662.

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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 softened across most of the Lower 48, including in the Southeast and Florida, where Idalia is expected to make landfall early Wednesday. NGI’s Spot Gas National Avg. fell 14.0 cents to $2.430.

In the peak of what’s been a mostly quiet Atlantic hurricane season, Idalia serves as a reminder of...