CO:Barclays: UK gas prices along the curve pulled up by oil prices
LONDON (Commodity Online): The front of the US natural gas forward curve inched upward while the back experienced a slight sell-off. The prompt contract edged up 3 cents, to $4.26/MMBtu, while calendar 2011 rose to $4.37, up by 1 cent.
Calendar 2012 shaved off 1 cent to $4.76. In the front of the curve, temperatures are still giving some support to prices. Temperatures should trend warmer this week, with well above-normal temperatures expected by the Fourth of July weekend.
Heat is expected to stay through the weekend and into next week, but instead of the blanket that covered much of the country, current forecasts call for pockets of warmth, mostly across the South. The back of the curve did not get much of a boost from a New York Times article questioning the potential of shale resources. Cash prices generally rose across the board, with Henry Hub up 6 cents $4.25, SoCal Border up 16 cents to $4.42, and Transco Zone-6 NY rose 18 cents $4.63.
