The NYMEX November natural gas futures contract settled at a fresh 11-month prompt low Friday, falling 11.7 cents to a $3.481/MMBtu close under continued fundamental pressure, sources said.
"A sluggish economy, comfortable inventories and high gas production will keep the market oversupplied until significant heating load appears," said Kilduff Group analyst Mike Fitzpatrick. "Even when it does, gas production this year is expected to climb to an all-time high."
Mild, shoulder-season weather and mounting storage inventories also will likely keep the market under pressure over the short term, sources said.
Analysts with Canaccord Genuity estimated the market is currently about 2 Bcf/d oversupplied, and "moderate weather forecasts suggest several more weeks of near-triple-digit [gas storage] builds on the horizon, which should continue to weigh on prices as we head into the heating season.
The contract traded Friday between $3.474/MMBtu and $3.60/MMBtu.
