DJ Natural Gas Prices Gain on Weather Outlook
By Nicole Friedman
Natural-gas prices climbed Wednesday as forecasters called for below-average temperatures in the next two weeks,
which could increase demand for the heating fuel.
Natural-gas futures for March delivery recently rose 16.7 cents, or 6.2%, to $2.844 a million British thermal units
on the New York Mercantile Exchange. Prices are on track to settle at a two-week high.
About half of U.S. households use natural gas as their primary heating fuel. This winter, ample supplies and moderate
weather have kept prices for the fuel relatively subdued.
Weather forecasts released Wednesday showed an "intense surge of cold" in the Midwest and East Coast this weekend,
followed by "another very significant cold outbreak" later next week, according to Bethesda, Md.-based forecaster
Commodity Weather Group LLC.
"Market participants are expecting a jump in heating-related nat gas demand over the next several weeks," Dominick
Chirichella, analyst at the Energy Management Institute, said in a note. "Prices should remain firm while the cold
weather remains in play."
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.85/mmBtu, compared with Monday's
range of $2.60-$2.685. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $12.00-$25.00/mmBtu,
compared with Monday's range of $13.50 to $15.00.
Write to Nicole Friedman at nicole.friedman@wsj.com
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(END) Dow Jones Newswires
February 11, 2015 09:30 ET (14:30 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
021115 14:30 -- GMT
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