US natural gas futures ended flat on Friday on forecasts for slightly cooler-than-normal weather over the next two weeks. Front-month gas futures on the New York Mercantile Exchange closed down 0.2 cents at $2.839 per million British thermal units. Some of the most active options were the $2 May 2015 puts and the $4.25 August 2015 calls.
On the Intercontinental Exchange, the basis spread between next-day gas at the Southern California Border below the Henry Hub benchmark in Louisiana fell to the lowest since last March. Gas rigs fell for a fifth straight week to 268, the lowest since 1993. That compares with 345 rigs a year ago and an all-time high of 1,606 in 2008, according to data from Baker Hughes.
Thomson Reuters Analytics said the latest Global Forecast System weather model for the lower 48 US states showed less cold over the next two weeks, with an expected 326 heating degree days. That compared with the 321-HDD forecast early Friday, the 334-HDD forecast on Thursday and a 308-HDD norm for this time of year.
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