natural gas

natural gas

Friday, May 8, 2015

Dow Jones Natural Gas - Morning Commentary

DJ Natural Gas Bounces Off One-Week Low


   By Nicole Friedman


  Natural-gas prices climbed Friday as traders focused on technical-trading indicators, after a bearish inventory
report sent prices to one-week lows the day before.

  Futures for June delivery recently rose 13 cents, or 4.8%, to $2.864 a million British thermal units on the New York
Mercantile Exchange.

  Prices fell the lowest level since April 29 on Thursday after weekly stockpile data showed a larger-than-expected
injection of gas into storage, suggesting that either production was more robust or demand was weaker than expected.

  Traders reversed those losses Friday. "The market is for the most part being driven by technical [trading], with the
momentum and sentiment still pointed to the upside for the short term," said Dominick Chirichella, analyst at the
Energy Management Institute.

  Weather forecasts also pointed to hot temperatures next week, which could boost demand for gas-fueled power
generators as consumers turn on air conditioners. Philadelphia and Washington, D.C., could see temperatures above 90
degrees for the first time this year next week, according to forecaster Commodity Weather Group LLC.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.80/mmBtu, compared with Thursday's
range of $2.77-$2.7825. Cash prices at the Transco Z6 hub in New York traded at $2.84/mmBtu, compared with Thursday's
range of $2.68-$2.84.


  Write to Nicole Friedman at nicole.friedman@wsj.com


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  (END) Dow Jones Newswires

  May 08, 2015 09:39 ET (13:39 GMT)

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

050815 13:39 -- GMT
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