U.S. gas prices have retreated from their highest level in real terms for more than a decade as mild temperatures and fuel-switching to coal have reduced the chance stocks will fall to critically low levels by the end of winter next March. Front-month futures have retreated to $4.10 per million British thermal units, down from a peak of $6.30 in early October, which was the highest level in real terms since the financial crisis of 2008. The six-month calendar spread has fallen to a backwardation of 31 cents per million Btus, down from a record $2.30 two months ago, as traders have become more comfortable about the level of inventories.
Oil futures end mixed on Friday, with global benchmark prices up but U.S. prices finishing with a loss.
The weather is expected to remain warmer than normal