DJ Natural-Gas Prices Waver as Demand Outlook Shifts
By Christian Berthelsen
Natural-gas prices wavered between gains and losses Monday as the demand outlook for the fuel improved.
Natural-gas futures for April delivery were up 0.2% at $1.8290 a million British thermal units on the New York
Mercantile Exchange after trading below Friday's close earlier in the session. Natural-gas futures have slumped more
than 20% this year amid surging production and weak demand. A lessened need for gas-fired heating due to a mild winter
has weighed on consumption.
Weather forecasts Monday for the coming weeks called for slightly cooler temperatures compared with previous
outlooks, raising the prospect of some late-season demand as winter fades and spring approaches. Still, much of the
U.S. could see above-normal temperatures into late March. Though the short-term outlook has improved somewhat, overall
fundamentals in the market remain bearish, with inventories of natural gas large and growing. Investors have been
betting heavily on lower prices, according to data from the Commodity Futures Trading Commission.
"In spite of some cooler temperatures now forecast over parts of the country, the end-of-March inventory level is
going to be at a record high," Energy Management Institute analyst Dominick Chirichella said in a note.
Total U.S. natural-gas inventories now stand at nearly 2.5 trillion cubic feet, 58% above year-ago levels and 42%
above average for this time of year.
In physical markets, cash prices for next-day gas at the benchmark Henry Hub delivery point in Louisiana last traded
at $1.71/MMBtu, within Friday's range of $1.67-$1.775. Cash prices for next-day gas at the Transco Z6 hub in New York
last traded at $1.1250/MMBtu, above Friday's range of $0.83-$0.91.
Write to Christian Berthelsen at christian.berthelsen@wsj.com
(END) Dow Jones Newswires
March 14, 2016 10:55 ET (14:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
031416 14:55 -- GMT
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