The contract has been trading overnight between $3.818/MMBtu and $3.914/MMBtu.
The contract fell 8.7 cents Tuesday because of "more moderate temperature forecasts and a lack of any ruinous tropical storm activity," according to the energy research firm Cameron Hanover.
The firm added that without a storm threat and a potential end to hot summer weather, selling would likely continue.
"Shoulder-month dynamics are starting to take over here and we will be on the back cycle with the hurricane peak just a few days away," the firm said. "We already seem to have hit the point at which tropical storms curl north without being able to straighten out enough to hit the northern US Gulf. That typically happens later in the season than it has this year."
Citi Futures Perspective's Tim Evans said that the market also appears to be "complacent" to a supportive storage trend. While storage injections have fallen below average over 11 straight weeks, the trend has failed to rally the market.
"Over the intermediate term, a reduction of the storage surplus on this scale normally supports a rally in prices, but the market has been falling since mid-June instead," Evans said.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
