Dow Jones - Natural Gas End of Day Commentary

DJ Natural Gas Prices Rise on Storage Data



   By Nicole Friedman


  NEW YORK--Natural gas prices gained on Thursday, after weekly inventory data showed U.S. stockpiles grew by less than
expected last week.

  Futures for September delivery settled up 3.9 cents, or 1.4%, in price at $2.755 a million British thermal units on
the New York Mercantile Exchange.

  Natural gas producers put 53 billion cubic feet of natural gas in storage in the week ended Aug. 14, the U.S. Energy
Information Administration said on Thursday. Analysts and traders surveyed by The Wall Street Journal had expected the
agency to report that stockpiles grew by 60 bcf.

  The smaller-than-expected build suggests production was lower or demand was stronger than anticipated. However, the
market remains oversupplied. Stockpiles now stand at 3.03 trillion cubic feet, 2.7% above the five-year average for the
same week.

  "The market tried to pick its head up, but it doesn't look like it's lasting too long," said Gene McGillian, analyst
at Tradition Energy. "The market is focused on the dropoff in seasonal demand."

  Natural-gas prices have traded within a tight 25-cent range this summer, as increased demand for gas-powered
electricity to run air-conditioning units has been balanced by robust production. Weather forecasts released on
Thursday showed a mix of hot and cool temperatures across the country in the next two weeks, with warmer weather on the
East Coast.

  "The last episode of very hot weather this summer is almost certainly over," said Andy Weissman, chief executive of
EBW AnalyticsGroup, in a note. "Power sector demand is starting to decline rapidly, laying the groundwork for further
price declines for natural gas."
FUTURES SETTLEMENT NET CHANGE
 Nymex September $2.755 3.9c
 Nymex October   $2.785 3.8c
 Nymex November  $2.874 3.8c

 CASH HUB      RANGE            PREVIOUS SESSION
 El Paso Perm $2.5525-$2.6125    $2.60-$2.65
 El Paso SJ   $2.55-$2.6125      $2.64-$2.68
 Henry Hub    $2.69-$2.735       $2.70-$2.755
 Katy         $2.64-$2.71        $2.665-$2.69
 SoCal        $2.70-$2.8025      $2.78-$2.855
 Tex East M3  $1.32-$1.47        $1.29-$1.36
 Transco 65   $2.69-$2.72        $2.72-$2.7375
 Transco Z6   $2.31-$2.70        $2.65-$2.78
 Waha         $2.60-$2.66        $2.55-$2.66

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

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  (END) Dow Jones Newswires

  August 20, 2015 15:10 ET (19:10 GMT)

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

082015 19:10 -- GMT
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