Despite forecasts calling for up to 8 inches of snow across southern New England, natural gas futures continued lower in expiration-related selling Tuesday, as traders continued to rotate out of their December contracts. With that the prompt month came to its final resting place at $4.14, down 12.1 cents for the day. Coincidentally, December also expired 12.1 cents lower than the level at which it began its month-long tenure as prompt contract, though it ended 1.4 cents above November’s settle.

Although there was plenty of weather watching to be done Tuesday, traders agreed that the price direction was more a function of the ebb and flow of orders. While December experienced a double-digit setback Tuesday, the out months held their own, slipping by 3-9 cents.

Snow showers were already blazing a path last night from the Ohio River Valley east across Pennsylvania to New Jersey. The precipitation is expected to be mixed in New York, with up to three slushy inches of snow potentially slimming the ranks of what is already expected to be a light contingent of local traders Wednesday. Those that find their way in to the exchange might be in a selling mood, as longer-term weather forecasts are finally beginning to show some moderating temperatures.

According to the latest eight- to 14-day weather outlook released Tuesday by the National Weather Service, below normal temperatures will relinquish their grip on the eastern half of the country. Instead, normal readings will be seen across much of the South and East, with below normal temperatures confined to the Carolinas, Georgia, Florida, and Alabama. Meanwhile, above-normal temperatures will be seen across the northern Plains as well as along the West Coast.

The Energy Information Administration will release updated storage data Wednesday at 4:30-40 p.m. EST. Expectations ahead of that report are focused on a net draw of 20-50 Bcf, which if realized would compare bullishly against the 1 Bcf draw from a week ago and the 30 Bcf injection witnessed at this time last year. The New York Mercantile Exchange (Nymex) said it plans to hold a special Nymex Access electronic trading session on Wednesday afternoon so that the natural gas futures market will be open during the pre-holiday storage report release.

EIA normally releases its storage report at 10:30 a.m. Eastern time on Thursday, but the schedule was changed this week because of the Thanksgiving Day holiday. The special Nymex session is scheduled from 3:15 to 6 p.m. Wednesday. Trades conducted during the special session will be considered as having been transacted during the Dec. 2 session.

“We have worked diligently to ensure the availability of our markets during the release of critical information so that all market participants have the ability to react as they see fit to storage information,” said Exchange President J. Robert Collins, Jr. “This additional session is being offered in direct response to customer request.”

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