Dow Jones Natural Gas - Daily Commentary

DJ Natural Gas Prices Rise With Cold Likely to Linger Into March


   By Timothy Puko


  Natural gas prices are inching up as colder-than-normal forecasts linger into March, suggesting strong demand into
next month.

  Natural gas for March delivery is up 4.6 cents, or 1.6%, at $2.948 a million British thermal units on the New York
Mercantile Exchange. The more actively traded April contract is up 3.7 cents, or 1.3%, at $2.926/mmBtu. March options
expired yesterday and the futures contract expires at today's close.

  Below normal temperatures are going to cover at least the eastern half of the country into mid-March, weather
forecasters said. About half of U.S. homes use natural gas for heat, making cold weather one of the biggest drivers for
demand.

  But the severe, 20-degrees-Fahrenheit-below normal temperatures will pass after February ends, the forecasters said.
That is limiting gains during what is still the coldest part of the year, Jim Ritterbusch, president of energy-advisory
firm Ritterbusch & Associates, said in a note to clients.

  "This market is looking increasingly vulnerable to a selloff," he said.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $3.23/mmBtu, compared with Tuesday's
range of $3.08-$3.16. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $12.00/mmBtu to
$35.00/mmBtu, compared with Tuesday's range of $13.00 to $15.00.


  Write to Timothy Puko at tim.puko@wsj.com


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  (END) Dow Jones Newswires

  February 25, 2015 09:28 ET (14:28 GMT)

  Copyright (c) 2015 Dow Jones & Company, Inc.

022515 14:28 -- GMT
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