Dow Jones - Natural Gas Falls On Demand Concerns

DJ Natural Gas Falls on Demand Concerns


   By Nicole Friedman


  NEW YORK--Natural-gas prices slid Friday on concerns that an upcoming snowstorm on the East Coast won't boost demand
for the heating fuel enough to shrink the current oversupply.

  Futures for February delivery recently fell 0.7 cent, or 0.3%, to $2.131 a million British thermal units on the New
York Mercantile Exchange.

  Moderate temperatures have reduced demand for natural gas as an indoor-heating fuel this winter, forcing producers to
put more fuel in storage and pushing prices lower. As of Jan. 15, natural-gas inventories stood 17% above the five-year
average for this time of year, according to the Energy Information Administration.

  A blizzard expected to hit the U.S. East Coast this weekend could boost heating use, but analysts warn it could also
cause power outages, which would reduce demand for natural gas as a power-generation fuel.

  And the cold weather isn't expected to last long. Forecasts for the next 11 to 15 days call for "much above-average
temperatures over the eastern half of the nation," according to forecaster WSI Corp.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.19/mmBtu, compared with Thursday's
range of $2.175-$2.25. Cash prices at the Transco Z6 hub in New York traded at $3.95/mmBtu, compared with Thursday's
range of $3.35-$3.75.


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


  (END) Dow Jones Newswires

  January 22, 2016 09:56 ET (14:56 GMT)

  Copyright (c) 2016 Dow Jones & Company, Inc.

012216 14:56 -- GMT
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