North American gas prices slid a little lower today. The prompt gas contract shed two more cents, to close at $2.45/MMBtu. The same shift lower was reflected out the curve. The rest-of-2012 was off three cents, to $2.88, while calendar 2013 notched two cents lower, to $3.65. Our sense is that if 2013 rallied back to $3, producers would bite on it in size. The market will be closely watching the storage number tomorrow, with consensus expecting a draw of 86 Bcf. But with widely divergent views on Coal displacement, we would expect the result to be called bullish by some analysts and bearish by others. The weather outlook remains generally colder in the near term, but temperatures projected for next week shifted decidedly warmer. Despite the ongoing cold weather, cash markets reversed course, giving back yesterday's gains. New Yorkprices (Transco-Z6), which rose 34 cents yesterday, slid 32 cents today, closing at $2.91. Henry Hub shed 12 cents, to $2.48. SoCalBorder slipped 17 cents, to $2.74.
Courtesy: Barclays Capital
