Jeremiah Shelor

Supported by comparatively light June supply readings, natural gas futures were probing modestly higher in early trading Tuesday. 

With recent estimates helping to tamp down concerns that higher prices and summer cooling demand could bring a ramp-up in production, natural gas futures were rallying through midday trading Monday. Cash prices were up decisively, more than erasing discounts recorded late last week.

Natural gas futures rebounded sharply higher in early trading Monday as analysts pointed to supportive weekend production trends. After experiencing heavy selling pressure last week, the July Nymex contract was up 15.8 cents to $2.745/MMBtu as of 8:43 a.m. ET.

Regional natural gas forwards sold off heavily during the May 23-29 trading period as the unofficial start of summer – and the ramp up in prices during the month of May – brought a shift in the production outlook.

As traders continued to weigh cooling demand potential against the prospect of domestic production climbing into the peak summer months, natural gas futures pared some recent losses midday Friday. Physical prices, meanwhile, mostly skidded lower on deals for weekend and Monday delivery.

The U.S. natural gas rig count increased by one to make it an even 100 for the week ending Friday (May 31), while a one-rig decrease in the oil patch left the combined domestic tally unchanged at 600, according to updated numbers published by Baker Hughes Co. (BKR).

As the market continued to mull a larger-than-expected inventory build and signs of returning production volumes, natural gas futures fell further in early trading Friday. 

Regional natural gas forwards sold off heavily during the May 23-29 trading period as the unofficial start of summer — and the ramp up in prices during the month of May — brought a shift in the production outlook.

With a high-side surprise adding to recent bearish momentum, natural gas futures continued lower through midday trading Thursday. Meanwhile, day-ahead prices at Henry Hub had a $1 handle, hearkening back to the price weakness observed during the shoulder season.

As traders mulled summertime production gains and braced for the latest round of weekly government inventory data, natural gas futures added to their recent losses in early trading Thursday.