Dow Jones - Natural Gas Gains On Weather Expectations

DJ Natural Gas Gains on Weather Expectations



  By Nicole Friedman


  NEW YORK--Natural-gas prices rose Tuesday as weather outlooks called for colder temperatures in the next two weeks
than previously forecast, boosting demand expectations.

  Futures for February delivery recently rose 2.9 cents, or 1.3%, to $2.187 a million British thermal units on the New
York Mercantile Exchange. The February contract expires at settlement Wednesday. The more-actively traded March
contract recently traded up 1.9 cents, or 0.9%, at $2.174/mmBtu.

  Wintry weather boosts natural-gas demand as more households and offices turn up the heat. About half of U.S.
households use natural gas as a primary heating fuel.

  Mild weather this winter has kept demand subdued, pushing more natural gas into inventory.

  Weather forecasts for the next two weeks show cooler temperatures in the next two weeks, which could increase demand
for the heating fuel, but it is uncertain whether the cold will last, Commodity Weather Group LLC said in a note.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.225/mmBtu, compared with Monday's
range of $2.10-$2.175. Cash prices at the Transco Z6 hub in New York traded between $2.55 and $2.685/mmBtu, compared
with Monday's range of $2.60-$2.75.


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


  (END) Dow Jones Newswires

  January 26, 2016 10:06 ET (15:06 GMT)

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

012616 15:06 -- GMT
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