Dow Jones - Natural Gas Rises On Weather Forecasts

DJ Natural Gas Rises on Weather Forecasts

  By Nicole Friedman

  NEW YORK--Natural gas prices rose Monday, erasing early losses, as forecasts for warmer-than-average temperatures in
the next two weeks boosted demand expectations.

  Natural gas demand rises in hot weather, as consumers use gas-powered electricity to power their air-conditioning
units.

  Forecasts for the next two weeks show warmer temperatures than previously expected, with "widespread anomalous warmth
over the eastern two-thirds of the nation" in the next 11 to 15 days, according to forecaster WSI Corp.

  Futures for September delivery recently rose 1.4 cents, or 0.5%, to $2.69 a million British thermal units on the New
York Mercantile Exchange.

  Natural gas consumption typically declines in the fall, and demand for natural gas ebbs until winter, when households
begin using natural gas to heat their homes.

  A hurricane in the Atlantic Ocean weakened into a tropical storm over the weekend, reducing concerns that the storm
could reach the U.S. Gulf Coast and threaten natural-gas production.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.66/mmBtu, compared with Friday's
range of $2.69-$2.705. Cash prices at the Transco Z6 hub in New York last traded between $2.54 and $2.70/mmBtu,
compared with Friday's range of $2.75-$2.80.

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

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  (END) Dow Jones Newswires

  August 24, 2015 10:18 ET (14:18 GMT)

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082415 14:18 -- GMT
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