The October front month NYMEX price fell about 12 cents to $2.157 US/mm.
Prices ultimately are remaining inside the channel we mentioned on Friday. It looks like the market again felt that natural gas was expensive at the $2.30 level. The story today was a weather reason: tropical disturbance in the Gulf of Mexico have organized Hurricane Francine and is expected to make landfall Wednesday at 8pm. The price drop reflects a belief that the storm will bring cooler temperatures from all the clouds/rain which will reduce cooling demand. While this storm is not predicted to hit an LNG plant, which would result in a temporarily shut down thereby making the gas that would’ve been used for LNG will become available in the market, causing prices to decrease, it is worth keeping a close eye on the predicted path of the storm. [WFG and FM]