After etching out its daily range during the first 40 minutes of trading yesterday, the natural gas futures market moved mostly sideways, as traders played their cards very close to their vests. Not even a rally by its petroleum complex brethren could entice natural gas out of its funk, and as a result the market was left to check sideways for the remainder of the session. At $2.253, the November contract finished unchanged on its first day as prompt contract at Nymex. Meanwhile, the 12-month strip sifted lower 1.1 cents to $2.768.

Traders were quick to note how natural gas prices were seemingly insulated from the price increases achieved yesterday in crude oil and related products. After all, it was just a few days ago that massive losses in November crude brought natural gas to new 30-month lows (see Daily GPI, Sept. 25), causing market watchers to point to the sometimes shaky price correlation between natural gas and oil. November crude finished 36 cents stronger yesterday at $22.74.

With analysts now calling for storage to reach and possibly surpass the 3.2 Tcf level by Nov. 1 (see related story), the market is wondering what will happen to prices if winter weather fails to show up early. That waiting for winter rationale is already showing up in cash prices, which are sagging for October baseload delivery, as utility buyers eschew purchases now in the hopes the prices will fall even lower by the end of October.

In daily technicals November has resistance at Thursday’s high of $2.30. Support is seen at the recent $2.18 low in November futures followed by psychological buying likely near the $2.00 level.

Nymex has announced the following hours for next week’s trading: natural gas will trade between 10 a.m and 2 p.m EDT each day except Wednesday, which will offer trading between 10 a.m. and 2:30 p.m. EDT; Internet-based Nymex Access will be available from 7 p.m. Sunday night and 3:00 p.m. Monday through Thursday until 9 a.m. the next morning for all energy futures contracts other than propane; propane will be traded on the system from 5 p.m. to 7 p.m. Monday through Thursday.

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