DJ Natural Gas Retreats on Oversupply
By Timothy Puko
Natural gas prices are pulling back Friday from a three-session rally as traders refocus on an oversupplied market.
Natural gas for May delivery fell 2.2 cents, or 0.8%, at $2.662 a million British thermal units on the New York
Mercantile Exchange. Trading has stayed within a 5-cent range.
The retreat would end the longest losing streak since early March, one that has confounded analysts and traders. They
have been pointing out that strong supply from the shale-gas boom hasn't let up and predicting that prices are more
likely to freefall than they are to keep climbing. Federal data shows the market was oversupplied by as much as 2
billion cubic feet a day last week, energy investment bank Tudor, Pickering, Holt & Co. said in a note Friday.
"You can't step away from the fact we are more than 4.5 bcf a day higher than our production levels from last year,"
said Gene McGillian, an analyst at Tradition Energy. "I'm actually surprised the market hasn't given back more" during
Friday's early decline.
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.64/mmBtu, compared with Thursday's
range of $2.57-$2.585. Cash prices at the Transco Z6 in New York last traded at $1.75/mmBtu, compared with Thursday's
range of $2.00 to $2.05.
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
April 17, 2015 10:21 ET (14:21 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
041715 14:21 -- GMT
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