Weekly natural gas cash prices rallied early amid lofty temperatures and strong cooling demand across much of the Lower 48. But bullish sentiment faded late in the week amid a production rebound and an expected respite from the heat over the weekend.

NGI’s Weekly Spot Gas National Avg. for the Independence Day holiday-abbreviated July 5-7 period slipped 23.5 cents to $2.395. It marked a rare setback of late. The weekly average had climbed each of the four previous weeks.

Conditions during the covered period were mixed from a price perspective. Heat permeated much of the country, getting air conditioners cranking. But rainy weather settled in late in the period across parts of the central and eastern United States – enough to give bulls pause. Still, forecasts called for a...