Dow Jones - Natural Gas Prices Decline On Expected Demand Drop

DJ Natural Gas Prices Decline on Expected Demand Drop


   By Nicole Friedman


  NEW YORK--Natural gas prices slid Monday as traders looked past current hot weather to an expected drop in demand in
the fall.

  Futures for October delivery recently fell 5.8 cents, or 2.1%, to $2.657 a million British thermal units on the New
York Mercantile Exchange.

  Hot weather typically boosts natural gas demand, as households and offices use gas-powered electricity to run
air-conditioning units. Weather-driven demand has helped keep the natural-gas market relatively balanced.

  Higher-than-average temperatures are forecast in the eastern U.S. in the next six to 10 days, but more moderate
weather is expected in the next 11 to 15 days, according to forecaster WSI Corp.

  "While periods of warmer-than-normal weather are still possible, after this week, weather conditions will generally
be too moderate to create high levels of air conditioning demand," said Andy Weissman, chief executive of EBW
AnalyticsGroup, in a note.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.675/mmBtu, compared with Friday's
range of $2.645-$2.67. Cash prices at the Transco Z6 hub in New York last traded at $2.7675/mmBtu, compared with
Friday's range of $1.80-$2.10.


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


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  (END) Dow Jones Newswires

  August 31, 2015 10:11 ET (14:11 GMT)

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

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