Cooler forecast trends for next week and the prospect of restored pipeline capacity uncorking additional supply helped send natural gas futures sharply lower in early trading Friday. The September Nymex contract was down 11.4 cents to $3.945/MMBtu at around 8:55 a.m. ET. The latest 15-day forecast from Bespoke Weather Services shifted somewhat cooler day/day, including projections for less heat into the eastern half of the nation for next week.
Meanwhile, Texas Eastern Transmission Co. (Tetco) notified shippers Thursday evening that it has received approval from federal regulators to return its 30-inch diameter system to full operating pressure, with capacity expected to increase starting next week. The decreased expected demand meets increased supply, creating the natural gas price drop we are seeing today. With the pipelines in full capacity, we should expect an increase in inventories. If the trend continues, the price might even drop further.
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