Friday, August 10, 2012

"US Gas Futures slip 3 pct Early, Milder Weather Weighs"

The futures are down 11.1 cents (3.77%) at 2.834.

Following up on yesterday's "Why Trading Natural Gas Can Cause Strokes, Heart Attacks Etc.":
This is very negative and sets up a decline to the 2.60-2.63 area.
From Reuters:
* Front month well below last week's 7-1/2-month high
    * Milder weather on tap for consuming regions
    * Stir in tropical activity has some traders cautious
    * Coming Up: Baker Hughes gas drilling rig data Friday

    By Eileen Houlihan
    NEW YORK, Aug 10 (Reuters) - U.S. natural gas futures fell
more than 3 percent in early trading Friday, pressured by
moderating weather expected in consuming regions of the nation
and more technical selling after Thursday's failure to reach new
spot highs.
    "Overnight, natural gas futures declined slightly in heavy
volume as revised weather forecasts calling for cooler
temperatures than previously expected weighed on the market
after yesterday's technical failure," said Addison Armstrong
senior director of market research at Tradition Energy.

In addition, before the injection report, Stephen Schork was quoted as saying:
"We are on the down slope of seasonal demand"