As natural gas traders in the western United States braced for higher demand, prices throughout the rest of the country continued to erode during the five-day Dec. 2-8 trading period, NGI’s Forward Look data show.

January fixed price trades for delivery at Henry Hub fell 44.3 cents week/week to $3.835/MMBtu, and most Lower 48 hubs posted discounts of a similar magnitude for the period. Notable exceptions to the broader downtrend were concentrated along the West Coast, particularly in the Southern California and Pacific Northwest markets.

December has brought with it a markedly different outlook for winter Nymex futures prices, as the bullish pre-season outlook has thus far turned to bearish reality, a fact that has reverberated throughout the North American market. The January...