After a rough start, natural gas futures extended their gains on Friday as traders continued to digest the latest storage data, which showed further tightening in the important U.S. South Central region. The August Nymex gas futures contract touched a $2.634/MMBtu intraday low before buyers swept in to send the prompt month 9.7 cents higher on the day to $2.798.

At A Glance:

  • Surpluses still lofty
  • Gas rigs off by 6
  • Forecasts trend cooler

Spot gas, which traded Friday for delivery through Wednesday, was mostly lower ahead of the extra long Independence Day holiday. NGI’s Spot Gas National Avg. fell 10.5 cents to $2.390.

With fresh storage data in mind, futures traders took a closer look at the tightening supply/demand taking place in the South Central. The Energy Information...