DJ Natural Gas Nears Yearly Low on Soft Demand Outlook
By Timothy Puko
NEW YORK--Natural-gas prices have dropped back near their yearly lows as strong supply and lack of demand push a
fourth straight session of losses.
Natural gas for November delivery fell 2 cents, or 0.5%, at $3.776 a million British thermal units on the New York
Mercantile Exchange. Prices had dropped as far as $3.764, within 4 cents of the 2014 intraday low set on July 29.
Prices have largely stayed between $3.80/mmBtu and $4/mmBtu since mid-July, balancing strong supply with expectations
for rising heating demand coming in the winter. But prices have fallen repeatedly this week, cracking the bottom of the
range as winter gets closer with no sign of cold weather.
Forecasters have been predicting above-average temperatures covering much of the country through the end of the
month. Without any cold to push demand for home heating, prices shouldn't push above $4/mmBtu, according to
energy-consulting firm Gelber & Associates in Houston.
"As above-normal temperatures dominate all but the east coast...the mitigation of heating demand has natty looking
downbeat once more," Matt Smith, an analyst at consultant Schneider Electric SA in Louisville, Ky., said in a note.
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $3.73/mmBtu, compared with Thursday's
range of $3.74-$3.81. Cash prices at the Transco Z6 hub in New York last traded at $1.80/mmBtu, compared with
Thursday's range of $2.03 to $2.095.
Write to Timothy Puko at Tim.Puko@wsj.com
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(END) Dow Jones Newswires
October 17, 2014 09:28 ET (13:28 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
101714 13:28 -- GMT
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