With forecasts calling for below-normal temperatures in the western third of the U.S. this week, while normal and above-normal conditions are due in the more densely populated central and eastern thirds, respectively, prices dropped Friday at nearly all points. The typical weekend decline of industrial demand was an additional, albeit minor, bearish factor.

Traders also likely were mulling the fact that despite Thursday’s storage pull report handily exceeding most expectations, total inventories remain at near-record levels after a month into the traditional withdrawal season.

Although a midweek snowstorm had already moved on, colder forecasts for the weekend in the Northeast had that region dominating the few locations where quotes were flat to about a nickel higher. Otherwise, losses ranged from 2-3 cents to a little more than a quarter, with most of the largest dips occurring in the Midcontinent/Midwest. Although lake-effect snowfalls were expected to continue in the Midwest market area Saturday, at the same time a gradual warming trend was predicted to get under way in much of the region.

Following the 3.6-cent uptick by January futures Thursday, Nymex traders returned to sending a bearish signal to the cash market as the prompt-month gas contract shed 14.0 cents (see related story).

The CIG-Henry Hub basis spread, which frequently had CIG commanding a premium in recent weeks, saw the Rockies pipeline at about a dime deficit for the second day in a row after the two trading points were at essential parity as recently as Wednesday.

A western utility buyer said it was “typical winter weather” in his area, but overnight lows only rarely got below freezing. That keeps overall throughput relatively constant, he said, as daily volume swings usually are no more than 30,000-40,000 Dth/d.

The buyer echoed the comments of others in saying trading activity is quieter than usual for now, largely due to holiday-related vacations and many traders taking off use-it-or-lose it vacation time. He joked that was widespread among his staff, and he might wind up one day this month being the only one in the office.

The buyer said Northwest is “kind of running people ragged” with its recent capacity restrictions, and there’s a problem with some suppliers trying to pack the southern end of the pipeline with San Juan Basin gas.

Despite the Algonquin citygate falling nearly a dime, IntercontinentalExchange reported that the point’s volumes traded on its platform jumped from 154,600 MMBtu Thursday to 246,600 MMBtu Friday.

Gas-oriented drilling plummeted during the week ending Dec. 9, according to the Baker Hughes Rotary Rig Count, which said active units had dropped by 36 to 820. Only one of the losses occurred in the Gulf of Mexico, but a whopping 35 rigs were idled onshore, Baker Hughes said. Its latest tally is 6% fewer than a month ago and down 14% from year-earlier levels.

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