Dow Jones - Natural Gas Rises On Bargain Hunting

DJ Natural Gas Rises on Bargain Hunting


   By Nicole Friedman


  NEW YORK--Natural gas futures rose Wednesday after traders who had bet on lower prices bought back contracts to lock
in their profits following a sharp price drop earlier this week.

  Natural-gas prices slid 8.7% in the two days ended Tuesday as weather forecasts called for a shorter period of frigid
temperatures across much of the U.S. than previously expected. Cold weather boosts demand for natural gas, which is
used as the primary heating fuel in half of U.S. households.

  Mild temperatures in late 2015 kept demand for natural gas subdued, weighing on prices.

  "The winter season has not only been warmer than normal on average, but the bouts of cold or winter-like weather have
been short lived," said Dominick Chirichella, analyst at the Energy Management Institute.

  Futures for February delivery recently rose 1.7 cents, or 0.8%, to $2.274 a million British thermal units on the New
York Mercantile Exchange.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.27/mmBtu, compared with Tuesday's
range of $2.35 to $2.41. Cash prices at the Transco Z6 hub in New York last traded between $2.50 and $3.75/mmBtu,
compared with Tuesday's range of $6 to $8.


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


  (END) Dow Jones Newswires

  January 13, 2016 10:08 ET (15:08 GMT)

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

011316 15:08 -- GMT
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