LONDON (Commodity Online): The Natural Gas market surprisingly did not exhibit signs of lethargy after the National Turkey Day, as prices rallied on the day with the front of the curve making the most gains.
The prompt contract surged by eight cents to $3.54/MMBtu. The back of the curve also pushed up but with less magnitude as Calendar 2012 inched up by six cents to $3.86, while Calendar 2013 piled on five cents to $4.42.
The weather outlook on the day supported the upside movement for the most part. The 6-10 day forecast became incrementally colder for the Southeastern Midwest and the Southeast.
The noon update also showed a slightly colder pattern for the Northeastern region of the US. In terms of supply data, the Baker Hughes gas-directed rig count fell by another six rigs to 865 on the week. In our view, production should continue to grow at the current level.
