DJ Natural Gas Prices Tick Higher
By Nicole Friedman
NEW YORK--Natural-gas prices rose Monday ahead of expected hot weather this week.
Natural-gas futures for August delivery settled up 1.3 cents, or 0.5%, at $2.789 a million British thermal units.
Natural-gas consumption rises in hot weather as consumers use more electricity to run air-conditioning units. "Prices
are moving higher today in recognition of some very hot August forecasts coming out this morning," said Aaron Calder,
analyst at Gelber & Associates, in a note.
Still, analysts say cooler weather later in the month could limit demand for the fuel. Forecaster WSI Corp. on Monday
called for "a shot of unseasonably cool air" to spread across the central and eastern U.S. in the next 11 to 15 days.
Goldman Sachs cut its forecasts for natural-gas prices to $2.75/mmBtu in the second half of this year, down from its
prior forecast of $3.30/mmBtu, and to $3/mmBtu next year, down from $3.50/mmBtu.
"Any rally in the absence of sustained hot summer temperatures will prove unsustainable," the bank said, noting that
natural-gas prices need to stay low to prevent power plants from switching away from natural gas to coal.
FUTURES SETTLEMENT NET CHANGE
Nymex August $2.789 +1.3c
Nymex September $2.788 +1.3c
Nymex October $2.816 +1.2c
CASH HUB RANGE PREVIOUS SESSION
El Paso Perm $2.78-$2.82 $2.72-$2.75
El Paso SJ $2.7775-$2.82 $2.72-$2.75
Henry Hub $2.80-$2.895 $2.79-$2.86
Katy $2.78-$2.83 $2.78-$2.82
SoCal $2.94-$3.01 $2.885-$2.92
Tex East M3 $1.50-$1.75 $1.22-$1.36
Transco 65 $2.82-$2.86 $2.79-$2.815
Transco Z6 $2.92-$2.99 $1.60-$1.85
Waha $2.79-$2.82 $2.75-$2.80
Write to Nicole Friedman at nicole.friedman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwireshttp://online.wsj.com?mod=djnwires">http://online.wsj.com?mod=djnwires
>
(END) Dow Jones Newswires
July 27, 2015 15:07 ET (19:07 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
072715 19:07 -- GMT
------
No comments:
Post a Comment