CO:Barclays: US nat gas falls on easing temperature
LONDON (Commodity Online): US natural gas markets slid lower on continued easing of temperatures nationwide. The prompt month fell 7 cents, to $4.58/MMBtu.
Calendar 2011 dropped 6 cents, to $4.71, and calendar 2012 fell 4 cents, to $5.00. Prices are in a holding pattern, as currently moderate temperatures are expected to heat up again next week.
We expect markets to remain rangebound as long as warmer-than-normal temperatures occupy the near-term forecast.
Absent these temperature deviations, downward pressure on prices should resume, as inventories should build more rapidly compared with last year. Cash prices fell across the board, with Henry Hub down 16 cents, to $4.59; SoCal Border down 16 cents, to $4.60; and Transco Zone-6 NY off 19 cents, to $4.77.
