DJ Natural Gas Falls on Weather Outlook
By Nicole Friedman
NEW YORK--Natural gas futures fell to a two-month low Tuesday as forecasts continued to call for moderate
indoor-heating demand.
Futures for March delivery settled down 3.9 cents, or 2.1%, to $1.782 a million British thermal units on the New York
Mercantile Exchange, the lowest settlement since Dec. 18.
Limited demand for natural gas as an indoor-heating fuel has pushed the market into oversupply this winter.
Stockpiles as of Feb. 12 stood 26% above the five-year average for this time of year.
Weather forecasts for the next two weeks called for warmer weather than previously expected, according to Commodity
Weather Group LLC, lowering expectations for natural-gas demand.
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $1.80/mmBtu, compared with Monday's
range of $1.80-$1.865. Cash prices at the Transco Z6 hub in New York last traded at $1.75/mmBtu, compared with Monday's
range of $1.66-$1.675.
FUTURES SETTLEMENT NET CHANGE
Nymex March $1.782 -3.9c
Nymex April $1.829 -3.3c
Nymex May $1.903 -3.1c
CASH HUB RANGE PREVIOUS SESSION
El Paso Perm $1.64-$1.665 $1.60-$1.64
El Paso SJ $1.63-$1.67 $1.62-$1.65
Henry Hub $1.80-$1.845 $1.80-$1.865
Katy $1.70-$1.755 $1.72-$1.76
SoCal $1.72-$1.72 $1.69-$1.71
Tex East M3 $1.06-$1.21 $1.27-$1.35
Transco 65 $1.755-$1.80 $1.77-$1.82
Transco Z6 $1.65-$1.75 $1.82-$1.85
Waha $1.67-$1.685 $1.66-$1.675
Write to Nicole Friedman at nicole.friedman@wsj.com
(END) Dow Jones Newswires
February 23, 2016 15:08 ET (20:08 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
022316 20:08 -- GMT
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