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NYMEX October gas settles 2.1 cents higher ahead of extended weekend

https://www.chemnet.com   Sep 01,2014 Platts
NYMEX October natural gas futures settled 2.1 cents higher at $4.065/MMBtu Friday as traders covered short positions ahead of the long US Labor Day holiday weekend.

"Where traders are short, they're covering going into the weekend, plus fundamentals have been a little more friendly when it comes to the weather," said Phil Flynn, senior market analyst at Price Futures Group, who described Friday's market as "basically steady."

The US National Weather Service forecast for the next two weeks shows above-normal temperatures in more than half the country.

"We're also seeing strong US economic data today," Flynn said.

Volumes were relatively light on the day, as traders turned their attention to bid week cash markets and squared away ahead of the three-day weekend, analysts said.

"Market participants have already packed it in for the long weekend," said Aaron Calder, senior market analyst at Gelber & Associates.

"After [Thursday's] ... response to an injection that was less than expectations, bearish traders tested the $4 level once again. But support held and price action is now in the green. The majority of the 15-day domestic temperature forecast is supportive," although traders will be eyeing updated forecasts when they return on Tuesday, Calder said.

October traded Friday in a range of $4.012-$4.075/MMBtu.

The NYMEX settlement is considered preliminary and subject to change until a final settlement price is posted at 7 pm EDT (2300 GMT).
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