Kevin Dobbs

Natural gas futures on Friday forged ahead through midday trading, putting the prompt month on target for its fourth gain in as many sessions, though it pulled back and hovered near even by early afternoon. Weakness in West Texas pressured spot prices lower.

For the fourth consecutive week, underground supplies of natural gas in storage in the South Central dwindled, bucking seasonal norms as every other region injected excess fuel into underground stocks.

Natural gas futures were up early Friday and headed toward a fourth consecutive day of gains as traders digested a bullish storage print, lighter production estimates and a looming heat wave.

Natural gas futures on Thursday fell early but gained ground through midday trading as a bullish government assessment of supplies in storage overshadowed near-term weakness in weather demand. However, the prompt month then retreated to near even in early afternoon trading. Spot prices slipped.

Natural gas futures searched for direction as Thursday’s session got underway, with market participants contemplating a mixed weather outlook and awaiting the latest government inventory data.

Natural gas futures advanced early Wednesday and kept momentum rolling through midday trading. The prompt month headed for a second daily advance. The cash market posted modest gains in most regions, meanwhile, though West Texas showed customary losses as supplies backed up amid maintenance work.

Production soared to record levels in Canada and intersected with a relatively mild winter earlier this year. This left the country with robust supply and weak natural gas prices. It also resulted in elevated levels of exports to the Lower 48, where buyers capitalized on relatively low-cost gas.

Natural gas futures forged further ahead early Wednesday, supported by bargain buying and expectations for a bullish government inventory print.

Natural gas futures mustered momentum on Tuesday – after losing ground the day before and last week – amid lighter production readings, bargain buying and short covering.

Natural gas futures hovered in a narrow range early Tuesday, with traders assessing the impacts of the former Hurricane Debby and mixed weather forecasts.