The NYMEX November natural gas futures contract continued to fall Friday morning, trading at $3.573/MMBtu, down 5.7 cents from Thursday's $3.630/MMBtu settlement, as of 10:35 a.m. EDT (1435 GMT).
"Every time there's a bit of a rally there's a faithful following of bears out there," said Ed Kennedy, a senior vice president of energy trading with Hencorp Becstone Futures.
Kennedy said the gas market is oversupplied at the moment and without much colder-than-normal weather this winter, the contract likely will stay in the tight range it has been in for months.
"We're adequately priced for the time being, and I think everybody knows it," Kennedy said.
PFGBest analyst Phil Flynn said a more positive global economic outlook is compelling traders to go long in crude oil and short in gas. When that economic outlook has been more negative, the trend has been the reverse -- to go long in gas and short in oil. "Once again, that spread is in play," he said.
The contract has been trading Friday between $3.549/MMBtu and $3.641/MMBtu.
