Dow Jones - Natural Gas Jumps As Weather Forecast Shifts

DJ Natural Gas Jumps as Weather Forecast Shifts



  By Christian Berthelsen


  Natural gas prices jumped Friday as forecasts moderated for above-normal temperatures in the coming days, stoking
hopes for late-season gas-fired heating demand.

  Natural gas futures for April delivery were up 3.2% at $1.8460 a million British thermal units on the New York
Mercantile Exchange, on pace for their highest settlement since Feb. 18. Prices have slumped 60% in the last two years
amid surging U.S. production and a mild winter this year that sapped demand, but have now recovered more than 12% since
hitting a nadir early this month.

  Analysts said the changes in temperature outlooks weren't so dramatic, and that much of Friday's rally appeared to be
driven by traders who used chart-based analysis as well as short-covering by bearish traders, who have well outnumbered
those with long bets on rising prices.

  Forecasts said the outlook for soaring temperatures over the high-demand area of the northeast through mid-March was
cooling down, though above-normal conditions are still expected to persist until nearly the end of the month.

  "A modest cooling trend in the temperature outlook has supported this recovery, although we still don't see enough
late-season heating demand," Citigroup Inc. said in a note.

   The gas market remains well-supplied, with data released by the U.S. Energy Department Thursday showing inventories
more than 40% above average levels for this time of year.


   Write to Christian Berthelsen at christian.berthelsen@wsj.com


  (END) Dow Jones Newswires

  March 11, 2016 10:53 ET (15:53 GMT)

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

031116 15:53 -- GMT
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