Natural gas futures extended Monday’s rally into Tuesday, with gains once again concentrated at the front of the forward curve. The December 2026 NYMEX contract added another 8 cents to settle at $3.30 per MMBtu, bringing its two-day advance to 30 cents and marking the highest settlement for a prompt-month contract since September 24. The balance-of-Winter 2026-27 strip increased by 4 cents to finish near $3.19, while Summer 2027 edged a penny higher to $2.78 per MMBtu. Gains were modest further out the curve, reflecting the market’s continued focus on near-term conditions.
While cooler weather forecasts remain the primary catalyst behind this week’s rally, additional support has emerged from a continued decline in domestic natural gas production estimates. Preliminary data for Tuesday suggests output has fallen below 108 Bcf per day, extending a downturn from recent record highs. Although the decline could reflect temporary disruptions or data noise, the latest estimates reinforce signs of a tightening supply-demand balance, particularly with LNG exports holding near record levels. Combined with the anticipated increase in heating demand, these developments have provided a more supportive fundamental backdrop for prices, even as the approaching cold snap is expected to be relatively short-lived.
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