NYMEX natgas ends sharply lower on weather outlook .
NEW YORK 1996-12-06
NYMEX Henry Hub natgas futures settled significantly lower Friday , pressured early by profit taking and driven even lower late by the National Weather Service 's bearish six to 10 day forecast , sources said .
January ended 29.7 cents lower at $ 3.487 per million British thermal units after dipping to a low of $ 3.46 .
Feb settled down 22 cents at $ 3.186 .
Most others also were down .
" Weather forecasts have been sketchy .
Now the National Weather Service is calling for above-normal temperatures in more than half of the U.S. , " one futures trader said .
In its forecast , the NWS said it expects above-normal temperatures " over the lower 48 states " from December 12 through December 16 .
With more room to the downside anticipated early next week , traders said support in January was at $ 3.47 , then $ 3.35 .
The next backstops were seen at $ 3.11 and $ 3.04 , the low set on November 21 .
Resistance was pegged at the new contract high of $ 3.80 .
In the cash market , Gulf Coast prices were around $ 3.60 shortly before nomination deadlines .
Midcontinent prices were similarly lower in the $ 3.40s. New York city gate gas slipped into the $ 4.40s , down almost 15 cents .
NYMEX said an estimated 35,662 Hub contracts traded , down from Thursday 's revised tally of 43,955 .
NYMEX Alberta natgas remained untraded , with January settling at $ 1.65 , off 10 cents from Thursday .
Physical prices for the weekend at the AECO storage hub were also down about 10 cents in the C$ 1.92-1.97 per gigajoule , or $ 1.52-1.56 per mmBtu range , pressured by unseasonably mild weather in western Canada .
NYMEX Permian natgas , also untraded , ended 10 cents lower at $ 2.90 .
In congruence with futures , Permian cash prices for the weekend fell more than 10 cents to the high - $ 3.40s.
On the KCBT , January finished 26.5 cents lower at $ 3.35 after dipping to a low of $ 3.33 earlier in the session .
February was down 22 cents at the close , while other deferreds were 4.5 to nine cents lower .
The East / West spread narrowed by 3.2 cents to 13.7 cents ( NYMEX premium ) .
Physical prices at Waha for the weekend lost more than 15 cents to the low-to-mid $ 3.50s as milder weather moved into the Southwest .
-- H McCulloch , New York Power Desk +212-859-1628