Natural gas futures gave up ground Wednesday as traders absorbed reports of increased production, uneven weather-driven demand and the potential to avert a railroad strike. 

At A Glance:

  • Gas production bounces back
  • Markets mull evolving weather
  • Analysts see storage pull in 80s Bcf

The January Nymex natural gas futures contract, a day after edging ahead 3.9 cents in its debut as the prompt month, shed 30.5 cents day/day and settled at $6.930/MMBtu. February fell 26.6 cents to $6.818.

NGI’s Spot Gas National Avg., in contrast, rallied a second straight day and advanced 34.5 cents to $7.855 on stout gains in both the West and Northeast.

Production on Wednesday bounced back close to 101 Bcf/d, according to Bloomberg’s estimate, after dipping below the century mark...