Houston (Platts)--20 Nov 2015 549 pm EST/2249 GMT
The NYMEX December natural gas futures contract settled 13.1 cents lower at $2.145/MMBtu Friday as weather forecasts tempered expectations for bullish heating demand.
Friday's session marked the fourth straight lower settlement for the contract, which fell 24 cents, or 10%, between Monday's and Friday's close. Friday's settlement was the lowest so far this month.
WSI's updated 11- to 15-day forecast showed the expansion of below-average temperatures out of the West and into the eastern two-thirds of the US, but the forecast was generally warmer than Thursday's.
"We still see above-average heating demand and robust storage withdrawals as likely, but the cold looks less intense than a day ago, Tim Evans, energy futures specialist with Citi Futures Perspective, said in a market note.
Thursday's US Energy Information Administration storage report, showing a 15-Bcf build to bring inventories to 4 Bcf, also was fresh in traders' minds.
"Despite the lower-than-expected build for the reference week, the sizeable accumulation of stored supplies shut out potential buyers," Teri Viswanath, director of natural gas strategy at BNP Paribas, said in a note.
"Adding fuel to the general pessimism of the week was the late-breaking warmer changes that appeared in the noon weather model run."
Viswanath said there is improved model guidance that more warm weather is likely to follow the cold pattern emerging over the next two weeks.
Technical factors also were bearish, as the December contract fell below the $2.25/MMBtu level that was offering a level of strong technical support, said Aaron Calder, a Gelber & Associates analyst.
The December contract traded Friday between $2.136/MMBtu and $2.275/MMBtu.
The NYMEX settlement is considered preliminary and subject to change until a final settlement price is posted at 7 pm EST (2400 GMT).
