LONDON (Commodity Online): The US gas market lost momentum today, and reversed the gains of the past few days. The front of the curve pulled back to Monday price levels, while calendar 2012 pulled back to Friday's level.
October gas ended seven cents lower on the day, closing at $3.76/MMBtu, while calendar 2012 ended six cents lower, to $4.30.
The markets are positioning for the storage report tomorrow, with consensus at 103 Bcf, compared with 74 Bcf at this week last year. Mild weather and higher production levels are underlying the forecasts for tomorrow's number.
If recent history is any guide, even a consensus storage number would drive prices lower. The temperature forecast is incrementally bullish, after yesterday's more bearish outlook, with the East expected to be normal, not cool, next week.
Warmer weather is expected to cover the center of the country, through Texas. Tropical storm activity remains in the forecast, but well east of North America.
Registering the day's downward theme, most cash market points pulled back. Henry Hub dropped four cents, to $3.89. SoCalBorder shed six cents, to $4.02, while New York (Transco-Z6) lost seven cents, to $4.13.
