Dow Jones - Natural Gas Prices Near 16-Year Low

DJ Natural Gas Prices Near 16-Year Low



  By Nicole Friedman


  NEW YORK--Natural gas slid to a new two-month low Wednesday as traders watched the growing oversupply of the fuel.

  Futures for March delivery recently fell 0.9 cent, or 0.5%, to $1.773 a million British thermal units on the New York
Mercantile Exchange, the lowest level since December. Prices are less than 2 cents above the 16-year settlement low
reached in December.

  The natural-gas market is oversupplied due to continued robust production and mediocre consumption, as the El Nino
weather phenomenon has kept temperatures warmer than normal in the eastern U.S. this winter and subdued demand for
natural gas as an indoor-heating fuel. As of Feb. 12, natural-gas stockpiles stood 26% above the five-year average for
this time of year, according to the Energy Information Administration.

  The EIA is due to release its data for the week ended Feb. 19 on Thursday. Analysts are still finalizing their
forecasts, but even a withdrawal in line with the five-year average draw for this time of year "would do little to
relieve ongoing elevated storage levels," Schneider Electric said in a note.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $1.805/mmBtu, compared with Tuesday's
range of $1.80-$1.845. Cash prices at the Transco Z6 hub in New York last traded between $1.77 and $1.84/mmBtu,
compared with Tuesday's range of $1.65-$1.75.


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


  (END) Dow Jones Newswires

  February 24, 2016 09:58 ET (14:58 GMT)

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

022416 14:58 -- GMT
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