Dow Jones - Natural Gas Rises For Fifth Straight Session

DJ Natural Gas Rises For Fifth Straight Session



  (MORE TO FOLLOW) Dow Jones Newswires

  March 10, 2016 14:40 ET (19:40 GMT)

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

031016 19:40 -- GMT

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  By Nicole Friedman

  NEW YORK--Natural-gas futures wavered, then settled higher Thursday as traders weighed a growing oversupply of
natural gas against expectations that the 17-year price lows reached last week would encourage lower production and
more demand.

  Futures for April delivery settled up 3.6 cents, or 2.1%, to $1.788 a million British thermal units on the New York
Mercantile Exchange, a near-two-week high.

  Prices have risen for five straight sessions, the longest winning streak since January.

  Natural-gas stockpiles fell by 57 billion cubic feet last week, less than the 58-bcf draw that analysts surveyed by
The Wall Street Journal had expected, the Energy Information Administration said Thursday. Inventories now stand at
2.479 trillion cubic feet, 42% above the five-year average for this time of year.

  Tepid demand and robust production have pushed natural-gas stockpiles to unusually high levels. Many market
participants expect stockpiles to hit record highs later this year, and some say inventories could bump up against
storage capacity.

  "Market participants understand that natural gas prices are a bargain" at current prices, said Aaron Calder, analyst
at Gelber & Associates, in a note. "But it will take summer heat or a drop off in production before prices come above
$2.00."

  The ultralow prices seen last week could spur producers to cut back further on drilling and to incite new
consumption, analysts say.

  "One of the things you're going to start to see is more natural-gas exports," said Donald Morton, senior vice
president at Herbert J. Sims & Co. "That's significant demand that can help this market balance itself out."


  FUTURES SETTLEMENT NET CHANGE

  Nymex April $1.788 +3.6c

  Nymex May $1.883 +3.7c

  Nymex June $1.989 +4.3c

  CASH HUB RANGE PREVIOUS SESSION

  El Paso Perm $1.475-$1.55 $1.41-$1.45

  El Paso SJ $1.45-$1.51 $1.415-$1.44

  Henry Hub $1.65-$1.74 $1.555-$1.60

  Katy $1.64-$1.70 $1.56-$1.64

  SoCal $1.53-$1.55 $1.49-$1.50

  Tex East M3 $0.93-$1.075 $0.88-$0.925

  Transco 65 $1.645-$1.68 $1.54-$1.61

  Transco Z6 $0.90-$1.10 $0.97-$1.02

  Waha $1.5675-$1.61 $1.49-$1.495

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

  (END) Dow Jones Newswires

  March 10, 2016 15:06 ET (20:06 GMT)

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

031016 20:06 -- GMT