Dow Jones - Natural Gas Rises On Cooler Weather Forecast

DJ Natural Gas Rises on Cooler Weather Forecast


   By Nicole Friedman


  NEW YORK--Natural gas prices gained Tuesday on forecasts of colder weather in the next two weeks.

  Natural gas futures for April delivery recently rose 3.5 cents, or 1.9%, to $1.883 a million British thermal units on
the New York Mercantile Exchange.

  Natural gas stockpiles stood 51% above average levels for this time of year as of March 18, according to the Energy
Information Administration, due to robust production and sluggish demand. A warmer-than-normal winter in the U.S. has
reduced demand for natural gas as an indoor-heating fuel.

  Analysts expect natural-gas stockpiles to hit record highs later this year.

  Weather forecasts call for some colder-than-average temperatures in the next two weeks, which could increase natural
gas consumption.

  "The weather looks to finally be contributing to demand," said energy-advisory firm Gelber & Associates in a note.

  But the oversupply will persist, said NatGasWeather.com in a note.

  "We view ... only 2-3 days of relatively cold U.S. temperatures" in the next two weeks, the forecaster said. "If
prices are going to find further support, they're going to have to do so in the face of relatively bearish weather
headwinds as supplies stall the next few weeks before increasing."


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


  (END) Dow Jones Newswires

  March 29, 2016 11:52 ET (15:52 GMT)

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

032916 15:52 -- GMT
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