LONDON (Commodity Online): The Natural Gas market sold off on the day as the weather outlook shifted to the warmer side. The prompt contract lost three cents, to $3.75/MMBtu, while Calendar 2012 finished at $4.00 flat, down by four cents.
Calendar 2013 took a harder hit and dropped five cents, to $4.56. Incidentally, the January 2013 contract closed at the lowest price level in that contract's history, further emphasizing the strong bearish sentiment in the market.
The weather outlook in the 6-10 day period shows a colder-than-normal West balanced by a warmer-than-normal East.
But with the key consuming regions centered around the Northeast, an incremental fall in expected HDDs in that region indicates that overall heating demand for the period can soften.
The market consensus for Thursday's EIA weekly storage report is an injection of 69 Bcf, similar to the actual number for the same time last year.
Cash prices were mostly lower on the day. Henry Hub cash slipped 10 cents, to $3.39. SoCalBorder moved four cents lower, to $3.56, as the persistent coldness in the West moderated on the day, while New York (Transco-Z6) dropped 6 cents, to $3.60.
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