natural gas

natural gas

Wednesday, September 23, 2015

Dow Jones - Natural Gas Gets Boost From Warm Weather

DJ Natural Gas Gets Boost from Warm Weather


   By Timothy Puko


  Natural gas prices are rising for a second-straight session Wednesday as unseasonably hot weather is helping lift
futures off nearly a five-month low.

  Prices for the front-month October contract rose 1.7 cents, or 0.7%, to $2.594 a million British thermal units on the
New York Mercantile Exchange. Gas is still within 10 cents of the three-year low closing price it hit April 27 after a
tumble to start the week put it at its lowest prices since that time.

  Hot summer weather can boost demand for natural gas, as more households and offices use gas-powered electricity to
run air-conditioning units. Temperatures of more than five-degrees-Fahrenheit above normal are likely to spread to over
half and maybe most of the country through the start of October, according to MDA Weather Services in Maryland.

  Futures fell Monday to their lowest settlement since late April on expectations that weather-driven demand would fade
as summer ended and the surplus of natural gas would grow. That is still likely to cap any rallies, Dominick
Chirichella, analyst at the Energy Management Institute, said in a note.

  "Above-normal temperatures in early fall are not nearly as severe as the same forecasts in the heart of the summer
cooling season," he said.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.585/mmBtu, compared with Tuesday's
range of $2.565-$2.60. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $2.20/mmBtu to
$2.37/mmBtu, compared with Tuesday's range of $2.25-$2.40.


  Write to Timothy Puko at tim.puko@wsj.com


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  (END) Dow Jones Newswires

  September 23, 2015 10:12 ET (14:12 GMT)

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

092315 14:12 -- GMT
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1 comment:

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    The apostle's guide for truth. John 16:13 "However, when He, the Spirit of truth, has come, He will guide you into all truth.....

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    ReplyDelete