LONDON (Commodity Online): Gas prices rallied ahead of the weekend with some colder weather expected on the near horizon. The prompt contract surged by seven cents to $2.68/MMBtu.
The balance of calendar 2012 and calendar 2013 pushed up nine cents and eight cents to $3.05 and $3.73, respectively. The 6-15 day period weather forecast became incrementally colder on the day, especially for the Eastern half of the country.
On the supply side, the Baker Hughes gas-directed rig count came off by another three rigs. However, supply has consistently surprised to the upside despite the fast-falling rig count.
Factors such as associated gas and new wells getting connected to the pipeline system have been clouding our view.
Cash prices mostly came off on the day with Henry Hub down by nine cents to $2.59. SoCal Border fell by 12 cents to $2.89. Transco-Z6 (NY) was up by 54 cents to $3.54.
