Staging

The cash market defied light heating load in the East, prior-day futures weakness, the “weekend effect” and bearish storage expectations by staging a rally at most points Thursday.

After staging a retreat Thursday on the Energy Information Administration’s 5 Bcf injection report for the week ended Nov. 10, December natural gas futures rebounded Friday on reports of some colder weather coming into the U.S. After breaking above the psychological $8 level to put in a $8.250 high on the New York Mercantile Exchange (Nymex), the prompt month ended up settling at $8.179, up 42.4 cents on the day and 38.5 cents higher than the previous week’s close.

As sources had expected, the cash market succumbed to weak weather fundamentals and dwindling energy futures support Tuesday by staging a major retreat. Virtually all points saw double-digit declines ranging from about 15 cents to half a dollar or so

Prices surprised more than a few traders Friday by staging a moderate rally in the face of weakening weather fundamentals and the industrial demand slump that accompanies a weekend period. A few scattered points were essentially flat, while increases ranged from as little as 2-3 cents to about a dime.