NEW YORK (Commodity Online):The prompt gas contract is tumbling toward a fresh low, but did not quite get there on Tuesday. March gas shed eight cents, to close at $2.47/MMBtu in a renewed sense of downward market momentum.
As opposed to recent days when the front and back of the curve traded differently, the entire curve sagged. Rest-of-2012 gas dropped 12 cents, to $2.91, while calendar 2013 slumped 11 cents, to $3.66. The sell-off stands in defiance of a colder tilt in the weather outlook.
The short-term outlook now includes decidedly cold weather for North America's midsection and through most of the East, except the coasts. The 6-10 day outlook is fairly weather neutral, with an expanding cold front starting in the Southwest in the 11-15 day forecast. Reflecting the weather, all cash points were up on the day, with several points showing chunky moves.
New York prices (Transco-Z6) popped 34 cents higher, to $3.23. Henry Hub was up 14 cents, to $2.60. SoCalBorder rose seven cents, to $2.91. Gains of 50-60 cents were registered in the constrained Boston market.
Source: Barclays Capital Commodities Research
