DJ Natural Gas Prices Rally on Colder Forecasts, Strong Demand
By Timothy Puko
Natural gas sprung to its highest point in nearly a month as traders grew more confident in forecasts showing
abnormally cool weather.
Natural gas for April delivery settled up 6.5 cents, or 2.3%, at $2.92 a million British thermal units on the New
York Mercantile Exchange. The market had dipped as low as $2.775/mmBtu before turning positive late this morning.
Weather forecasts are divided about how strong a shot of unseasonably cool weather will be in the coming weeks. The
market initially traded lower on some signs that the cold wouldn't be so bad, reducing demand for natural gas heating
fuel.
But some traders put more weight on the forecasts that show even cooler temperatures than expected, said Aaron
Calder, senior market analyst at energy-consulting firm Gelber & Associates in Houston. Midday updates from weather
models did show heavier snowfall in the north on Friday and a "large push of cold air" late next week for the Midwest
and the East, WeatherBELL Analytics LLC said.
"Because (the weather forecasts) have been so wishy-washy, just the fact that they're cold for another day is
bullish," Mr. Calder added.
The rally got support from technical traders, he said. As the market approached its two-week high near $2.80/mmBtu,
technical traders bid up the price even more, expecting the momentum to keep futures rising. They did throughout the
afternoon.
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
March 18, 2015 14:48 ET (18:48 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
031815 18:48 -- GMT
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