The November 2012 contract settled at $3.471/MMBtu (up ~$.07/MMBtu).
In the wake of Sandy, millions of households have lost power, so it is expected that demand for natural gas could drop between 6-13Bcf. Even though, the storm will curb demand some nuclear plants may go off line as a precaution due to flooding concerns. Today clearly, the loss of demand is outweighing the loss of additional nuclear capacity.
The extended forecast suggests that above normal temperatures in the west half of the country are moving east. This could further limit natural gas demand.
We see support for the December 2012 contract at $3.65/MMBtu and $3.60/MMBtu.
