Dow Jones - Natural Gas Falls To Two-Month Low

DJ Natural Gas Falls to Two-Month Low

By Nicole Friedman

     Natural-gas prices fell to fresh two-month lows Friday on expectations that continued mild demand would keep the
market oversupplied.

     A warmer-than-average winter in the Eastern half of the U.S. has limited demand for natural gas as an
indoor-heating fuel, pushing more gas into storage and weighing on prices. As of Feb. 12, stockpiles of natural gas
stood 26% above the five-year average for this time of year, the Energy Information Administration said Thursday.

     Temperatures aren't expected to turn much colder in the next two weeks, according to forecasts, and traders are
already looking ahead to winter when demand for the fuel will fall further.

     "With temps forecast to be in the mid 50s here in the NYC area, all signs continue to point lower" for natural-gas
prices, said Frank Clements, co-owner of Meridian Energy Brokers Inc. in New York, in a note.

     Natural gas futures for March delivery recently fell 2.9 cents, or 1.6%, to $1.823 a million British thermal units
on the New York Mercantile Exchange, the lowest intraday level since December.

     Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $1.785/mmBtu, compared with
Thursday's range of $1.85-$1.885. Cash prices at the Transco Z6 hub in New York last traded at $1.75/mmBtu, compared
with Thursday's range of $1.96-$1.99.

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


  (END) Dow Jones Newswires

  February 19, 2016 10:18 ET (15:18 GMT)

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

021916 15:18 -- GMT
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