UPDATE 3-U.S. natgas futures end down for 2nd day despite cold

Tue Nov 19, 2013 4:13pm EST
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* Cold forecast seen lifting demand, limiting downside

* Comfortable storage, record production weigh on sentiment

* Coming up: Reuters weekly natgas storage poll Wednesday

By Joe Silha

NEW YORK, Nov 19 (Reuters) - U.S. natural gas futures reversed course and ended lower on Tuesday, as early buying on colder weather forecasts for later this week and next week was offset by sellers noting that upside momentum seemed to have stalled this week.

"It (the sell-off) may be a little technical follow-through after yesterday, but it's on light volume and I wouldn't attribute a lot to it. The market really wants to see some cold with staying power, and that's not clear right now," said Patrick Saunders, analyst at Albans Energy in Houston.

Front-month gas futures on the New York Mercantile Exchange ended down 6.1 cents, or 1.7 percent, at $3.556 per million British thermal units after trading between $3.551 and $3.647.

The nearby contract, which hit a 3-1/2-week high of $3.705 on Monday then closed lower on profit taking ahead of chart resistance, is down 2.8 percent so far this week. It had gained a total of 4.2 percent in the previous two weeks.

Traders said weaker cash prices also prompted some selling, particularly with computer weather models constantly changing the temperature outlook for early December.   Continued...