Dow Jones - Natural Gas Rises For Third Straight Session

DJ Natural Gas Rises for Third Straight Session


   By Christian Berthelsen


  Natural-gas futures rose for a third straight session Tuesday as investors took profits from bearish bets that have
paid off amid the market's 30% slide since early January.

  Natural-gas futures for April delivery rose 1.3% to settle at $1.7120 a million British thermal units on the New York
Mercantile Exchange, their highest closing price since March 1. Until last week, natural-gas prices had been in a
virtual one-way decline for two months as the mild winter slashed demand for gas-fired heating.

  Higher-than-normal temperatures look set to persist in the coming weeks, with forecasts for surging temperatures over
much of the U.S. in the coming days and warm weather persisting into late March, particularly in the high-demand areas
of the northeastern U.S., presaging an early end to an already-weak winter season.

  With that outlook already priced into the market and the winter season fading, traders may start looking past
demand-driving weather to focus more on domestic output.

  "For the next two months, production levels will move the market as weather becomes less of a factor," Houston
research consultancy Gelber & Associates said in a note. "It's going to take a long time to return to normal market
conditions and normal prices."

  Analysts said the market gain of the past few days did not appear driven by any improving supply or demand
conditions, and said it was likely due to bearish traders closing out profitable short bets, which can prompt price
rallies.

  Domestic natural-gas stockpiles now total 2.5 trillion cubic feet, 46% higher than year-ago levels and 36% above
average for this time of year.

            FUTURES SETTLEMENT NET CHANGE
Nymex April $1.712              +2.2c
Nymex May   $1.803              +1.4c
Nymex June  $1.906              +1.4c

CASH HUB        RANGE     PREVIOUS SESSION
El Paso Perm $1.39-$1.49     $1.37-$1.45
El Paso SJ   $1.37-$1.43     $1.40-$1.49
Henry Hub    $1.5325-$1.5650 $1.51-$1.5375
Katy         $1.50-$1.60     $1.465-$1.52
SoCal        $1.47-$1.50     $1.49-$1.54
Tex East M3  $0.88-$0.94     $0.86-$0.985
Transco 65   $1.50-$1.535    $1.48-$1.54
Transco Z6   $0.99-$1.05     $1.05-$1.30
Waha         $1.45-$1.48     $1.44-$1.45


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


  (END) Dow Jones Newswires

  March 08, 2016 16:10 ET (21:10 GMT)

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