LONDON (Commodity Online): Natural Gas prices came tumbling down as last week's short covering rally was proven to be short-lived as well.
Indeed, without a slew of producer annoucements of drilling cuts, it would be hard to find any support for gas prices in the short term.
Instead, Exxon Mobil actually stepped out and said that it has no intention to curtail its dry gas drilling. Moreover, prices were pushed down even lower by another warm weather forecast.
The 6-15 day weather outlook has again turned incrementally warmer on the day for the country as a whole.
The prompt contract dropped 21 cents, down to $2.50/MMBtu. The balance of 2012 also fell sharply, down by 16 cents to $2.88, while calendar 2013 suffered slightly less and came off by 12 cents to $3.56.
Cash prices tumbled on the warm weather forecast. Henry Hub fell by 20 cents to $2.51. SoCal Border dropped 17 cents to $2.71. Transco-Z6 (NY) finished at $2.92, down by 20 cents.
