LONDON (Commodity Online): Gas prices inched lower on another uneventful day. Prompt contract fell 7 cents, to $3.81/MMBtu. The balance of calendar 2011 and calendar 2012 finished the week at $3.96 and $4.40, down 6 cents and 3 cents, respectively.
Weather for the next 6-15 day period could trend cooler than normal, while the tropics remain inactive for the time being. Gas-directed rig count jumped 20 rigs, to 912 for the week.
We expect production to continue to grow in the near term, albeit at slower rates, as producers continue to direct more infrastructures toward drilling oil.
Cash prices tumbled as seasonal cooling demand recede. Henry Hub dropped 19 cents, to $3.84. SoCalBorder fell 25 cents, to $4.00, and New York (Transco-Z6) finished at $4.01, down 26 cents.
