Natural gas futures extended their rally as a hotter long-range forecast, a dip in production and bullish technical momentum lifted the prompt month ahead of expiration. The July Nymex contract rolled off the board at $6.551/MMBtu, up 5.0 cents on the day. The August contract, which moves to the front of the Nymex curve on Wednesday, settled 2.4 cents higher at $6.570.

Natural Gas Prices

At A Glance:

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

Spot gas prices also strengthened, with hefty gains of 50 cents or so across several U.S. locations. NGI’s Spot Gas National Avg. climbed 39.5 cents to $6.480.

Fresh off a 28.1-cent jump for futures on Monday, bulls were eager to keep the momentum going at the start of Tuesday’s session. Fundamentals lent a hand...