U.S. Natural Gas Futures Extend Decline on Weather Outlook
Dow Jones10-21
1523 ET - U.S. natural gas futures settle lower, testing $3 support on a mild weather outlook. The market "appears almost entirely focused on mild temperature forecasts that are now stretching into next month per the reliable 6-14 day views," Ritterbusch & Associates says in a note. Not much weather premium seems to be embedded in the December and forward gas contracts, and with the storage surplus small enough that it could be erased by a colder than normal November, "we can envision a sharp upside price reversal on the first sniff of renewed below-normal temps," the firm adds. Nymex natural gas for November delivery settles down 3.1% at $2.9630/mmBtu.
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