text: NYMEX natgas ends sharply lower on weather outlook. NEW YORK 1996-12-06 
   NYMEX Henry Hub natgas futures settled significantly lower Friday, pressured early by profit taking and driven even lower late by the National Weather Service's bearish six to 10 day forecast, sources said. January ended 29. 7 cents lower at $3. 487 per million British thermal units after dipping to a low of $3. 46. Feb settled down 22 cents at $3. 186. Most others also were down. " Weather forecasts have been sketchy. Now the National Weather Service is calling for above-normal temperatures in more than half of the U. S. , " one futures trader said. In its forecast, the NWS said it expects above-normal temperatures " over the lower 48 states " from December 12 through December 16. With more room to the downside anticipated early next week, traders said support in January was at $3. 47, then $3. 35. The next backstops were seen at $3. 11 and $3. 04, the low set on November 21. Resistance was pegged at the new contract high of $3. 80. In the cash market, Gulf Coast prices were around $3. 60 shortly before nomination deadlines. Midcontinent prices were similarly lower in the $3. 40s. New York city gate gas slipped into the $4. 40s, down almost 15 cents. NYMEX said an estimated 35, 662 Hub contracts traded, down from Thursday's revised tally of 43, 955. NYMEX Alberta natgas remained untraded, with January settling at $1. 65, off 10 cents from Thursday. Physical prices for the weekend at the AECO storage hub were also down about 10 cents in the C$1. 92-1. 97 per gigajoule, or $1. 52-1. 56 per mmBtu range, pressured by unseasonably mild weather in western Canada. NYMEX Permian natgas, also untraded, ended 10 cents lower at $2. 90. In congruence with futures, Permian cash prices for the weekend fell more than 10 cents to the high - $3. 40s. On the KCBT, January finished 26. 5 cents lower at $3. 35 after dipping to a low of $3. 33 earlier in the session. February was down 22 cents at the close, while other deferreds were 4. 5 to nine cents lower. The East / West spread narrowed by 3. 2 cents to 13. 7 cents (NYMEX premium). Physical prices at Waha for the weekend lost more than 15 cents to the low-to-mid $3. 50s as milder weather moved into the Southwest. --H McCulloch, New York Power Desk +212-859-1628
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