NYMEX January natural gas futures moved higher in US overnight tradingbefore retracing their gains as traders consider supportive weather againstbearish supply.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
Colder weather outlooks for major heating regions support the upside,while the recent and impending lackluster pace of storage erosion is keepingdownward pressure on the market. At 6:50 am ET (1150 GMT) the contract was 5.2cents lower at $2.933/MMBtu.
Updated National Weather Service projections for the six-to-10-day andeight- to 14-day periods continue to show the US split between below-averagetemperatures over the entire eastern half and aboveaverage temperatures overthe bulk of the West, with a narrow swath of average temperatures over theCentral US.
Cold weather in store for the major heat-consuming regions in the Eastshould boost demand and weekly stock withdrawals, but recent mild conditionshave meant modest storage withdrawals.