Isra-Mart srl: US natural gas slides as temperature forecast trend moderate

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US natural gas markets continue to slide lower as temperature forecasts trend more moderate. Prices have now dropped for five consecutive trading days. The prompt month fell 9 cents to $4.33/MMBtu.

Calendar 2011 lost 9 cents, to $4.47, and calendar 2012 dropped 8 cents to $4.81. The mood in the market has turned decidedly bearish as temperature forecasts have moved closer to normal, nuclear outages have returned to seasonally normal levels, and production keeps growing.

The rig count lost nine rigs on the week and is now at 870, stuck in a sideways pattern. Cash prices declined across the board, with Henry Hub down 16 cents to $4.39, SoCal Border off 22 cents to $4.42, and Transco Zone-6 NY down 11 cents to $4.71.