Natural Gas Prices Rally Then Fall Back as Heat and Lower Production Offset

Natural gas futures lost some of their early gains on Monday as a surge in heat and lower production failed to fully offset ample inventories and easing power-sector demand.

The September contract, which is a key benchmark for natural gas prices, pared its advance late morning after initially rising by about 3%.

According to Natural Gas Intelligence, the price gains were tempered by the presence of high storage levels and lower demand from the power sector.