CO:Barclays: US nat gas slump seven cents to $3.76/MMBtu
LONDON (Commodity Online): The front of the Natural Gas forward curve tumbled on the day as the weather forecast turned incrementally warmer for the 6-15 day period.
The prompt contract sold off throughout the trading session and finished at $3.46/MMBtu, down by 13 cents, making another record low for the December 2011 contract.
Calendar 2012 dropped seven cents to $3.76, while calendar 2013 shaved off four cents to $4.34.
The weather outlook has turned warmer again across the South and the East where some much-above-normal temperatures are expected for the next 6-10 day period.
The 11-15 day period forecast shows that this above-normal-warm weather pattern is expected to persist.
Interestingly, the current La Nina event is forecasted to cause a warmer December compared with what we experienced last year, which has put further downward pressure on near-term prices.
Cash prices fell across the board, due to the warmer weather forecast. Henry Hub dropped 12 cents, to $3.17. SoCalBorder shaved off six cents, to $3.51, and New York (Transco-Z6) fell by 12 cents, to $3.37.