Dow Jones - Natural Gas Trades Below Three-Year Low Settlement

DJ Natural Gas Trades Below Three-Year Low Settlement



  By Timothy Puko


  Natural gas futures extended a selloff into a second session on Friday as data showing a larger-than-expected
addition to stockpiles continued to pressure the market.

  Natural-gas futures for November delivery recently lost 3 cents, or 1.2%, to $2.423 a million British thermal units
on the New York Mercantile Exchange. The price is below the three-year low closing price of $2.433/mmBtu hit on Oct. 1.

  The U.S. Energy Information Administration said on Thursday producers added 100 billion cubic feet of natural gas to
storage in the week ended Oct. 9. That is 6 bcf more than the average forecast of 18 analysts and traders surveyed by
The Wall Street Journal.

  It is convincing traders that stockpiles may hit a record of around 4 trillion cubic feet headed into winter heating
season, said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. Large weekly surpluses could
become a common theme as unseasonably warm weather is likely to limit heating demand once a brief burst of cold leaves
the eastern states early next week, analysts said.

  "It's a market that's oversupplied and it's going to stay that way," Mr. Yawger said.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.36/mmBtu, compared with Thursday's
range of $2.48-$2.53. Cash prices at the Transco Z6 hub in New York last traded at $2.41/mmBtu, compared with
Thursday's range of $2.25-$2.39.


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


Subscribe to WSJ: http://online.wsj.com?mod=djnwireshttp://online.wsj.com?mod=djnwires">http://online.wsj.com?mod=djnwires
>

  (END) Dow Jones Newswires

  October 16, 2015 10:37 ET (14:37 GMT)

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

101615 14:37 -- GMT
------