Natural Gas Forecast Dec. 30, 2011, Fundamental Analysis

Natural gas prices fell on Thursday after the EIA report showed a smaller decline in US stockpiles than analysts expected, while meteorologists predicted colder weather than before, and that could boost the demand on natural gas in the next few days.

Traders will continue to focus on weather developments, where weather forecasts suggest temperatures will be likely lower than average over the coming period, and that could put natural gas between gains and losses in next period.