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Article: Natural gas continues its downward spiral, weak shoulder-months demand lies ahead.
- Article from:
- The Oil Daily
- Article date:
- August 31, 2009
- Author:
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Natural gas futures continued their downward spiral last week as traders focused on weak late summer demand, the absence of hurricane threats to the Gulf of Mexico and swelling gas supplies. The coming Labor Day holiday marks the start of the "shoulder" months, where storage begins to grow at a faster pace and futures prices typically hit seasonal lows.
"There's still some heat in the West as well as parts of the South that will linger on for the next few weeks, but the biggest cooling demand is pretty much in the rearview mirror," said a gas trader in Florida. "This means that gas injections into storage should begin to accelerate and prices should fade ...