Natural Gas Futures Near $3 Amid Cooler Weather and Easing Production

Natural gas futures rallied on Tuesday to reach the doorstep of $3 as cooler weather gained prominence in the US, despite production showing signs of easing and a storage inventory surplus that could further shrink.

The front-month futures were bolstered by bargain buying and bullish signals, according to the Daily Gas Price Index. Despite loosening market fundamentals, production showed signs of slowing down, which may lead to a decrease in supply.

The cooler weather has also pressured demand for natural gas, as seen in the Feedgas calls that have been reduced due to maintenance.