DJ Natural Gas Gains on Weather Outlook
By Nicole Friedman
NEW YORK--Natural gas prices rose to a one-month high Monday on expectations of increased demand due to hot
temperatures.
Natural gas for October delivery recently rose 6.5 cents, or 2.4%, to $2.758 a million British thermal units on the
New York Mercantile Exchange, the highest settlement since Aug. 14.
Natural gas consumption rises in hot temperatures, as consumers use gas-powered electricity for air-conditioning
units.
The weather in the next two weeks will be hotter than previously expected, according to forecasts released Monday.
Some forecasts "expect hotter-than-normal temperatures to linger for the next 10 days," said energy-advisory firm
Gelber & Associates. "For the moment, this means more demand."
Natural gas prices have traded in a tight range in recent weeks as hot weather fuels demand but the impending end of
summer limits price gains.
"Despite a relatively hot summer, the storage glut has kept on expanding due to elevated production and soft economic
demand, keeping prices below $3/mmBtu," said Bank of America Merrill Lynch in a note. The bank expects prices to
average $2.89/mmBtu this year and $3.50/mmBtu next year.
FUTURES SETTLEMENT NET CHANGE
Nymex October $2.758 6.5c
Nymex November $2.828 6.1c
Nymex December $2.971 5.8c
CASH HUB RANGE PREVIOUS SESSION
El Paso Perm $2.56-$2.60 $2.505-$2.57
El Paso SJ $2.575-$2.62 $2.51-$2.57
Henry Hub $2.67-$2.715 $2.6425-$2.70
Katy $2.65-$2.69 $2.62-$2.70
SoCal $2.72-$2.79 $2.70-$2.745
Tex East M3 $1.31-$1.425 $1.15-$1.265
Transco 65 $2.64-$2.675 $2.63-$2.68
Transco Z6 $1.95-$2.30 $1.52-$2.05
Waha $2.56-$2.595 $2.54-$2.56
Write to Nicole Friedman at nicole.friedman@wsj.com
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(END) Dow Jones Newswires
September 14, 2015 15:33 ET (19:33 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
091415 19:33 -- GMT
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