LONDON (Commodity Online): For those indexing their Thanksgiving roasting and baking fuel costs to spot gas prices, your holiday just got a little cheaper.
Cash prices reversed yesterday's move higher, more than giving back yesterday's gains, with several price points dropping below $3. All price points fell on the day, reflecting the fact that there is not much demand to stimulate during the holiday weekend.
Henry Hub slumped 21 cents, to $2.84. New York (Transco-Z6) fell 35 cents, to $2.98. SoCalBorder dropped 39 cents, to $3.11. Futures markets are looking past the short-term holiday demand slump, with the curve adding a few pennies in advance of the holiday.
The day before Thanksgiving can be a tricky time to trade, as traders must assess risk across a four-day holiday when the weather outlook could shift markedly (the market is open Friday, but is typically lightly traded that day).
The EIA storage number was released today, showing a build of 9 Bcf, which was lower than consensus. The eastern region saw its first week without an injection since the start of injection season.
The weather outlook continues the trend of the past few days - less warm weather than expected, but warmer than normal nonetheless. On the day, the prompt December contract gained 4 cents, to close at $3.46. Calendar 2012 advanced a nickel, to $3.80, while 2013 moved three cents higher, to $4.37.
