Dow Jones - Natural Gas Falls On Supply Concerns

DJ Natural Gas Falls on Supply Concerns



  By Nicole Friedman


  NEW YORK--Natural gas prices fell Monday on continued concerns about oversupply, despite stronger demand.

  Moderate weather has kept demand for natural gas as an indoor heating fuel subdued this winter, pushing inventories
higher and weighing on prices.

  Forecasts released Monday call for a bout of cold weather in the next two weeks. But analysts say the increased
demand isn't enough to counteract the glut of gas.

  Futures for February delivery recently fell 8.6 cents, or 3.5%, to $2.386 a million British thermal units on the New
York Mercantile Exchange.

  "Weekend updates to temperature views don't appear sufficient to support $2.50 gas," said Jim Ritterbusch, president
of energy-advisory firm Ritterbusch & Associates, in a note. "We still see more downside than upside potential from
current price levels."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.48/mmBtu, compared with a range of
$2.44-$2.485 on Friday. Cash prices at the Transco Z6 hub in New York last traded at $4.25/mmBtu, compared with
Friday's range of $3.00-$3.55.


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


  (END) Dow Jones Newswires

  January 11, 2016 10:50 ET (15:50 GMT)

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

011116 15:50 -- GMT
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