Dow Jones - Natural Gas Rises On Weather Outlook

DJ Natural Gas Rises on Weather Outlook

  By Nicole Friedman

  NEW YORK--Natural-gas prices rose Tuesday as traders considered forecasts for colder weather in the next two weeks,
but concerns about oversupply capped gains.

  Futures for April delivery recently rose 3.2 cents, or 1.8%, to $1.860 a million British thermal units on the New
York Mercantile Exchange.

  The natural-gas market is vastly oversupplied, as production remains robust and a warmer-than-average winter has
reduced demand for the fuel to heat homes and offices. Natural-gas inventories stood 48% above the five-year average
for this time of year as of March 11, according to the Energy Information Administration.

  A late bout of wintry cold could boost demand for natural gas in some parts of the U.S. in the next eight to 15 days,
according to NatGasWeather.com. "But overall, it's not going to be cold enough over enough of the U.S. for a long
enough period to bring a significant draw on supplies," the forecaster said.

  In physical markets, cash prices for next-day delivery of natural gas at the benchmark Henry Hub in Louisiana last
traded at $1.765 a million Btus, below Monday's range of $1.74-$1.77. Gas at the Transco Z6 hub in New York last traded
at $1.20 a million Btus, below Monday's range of $1.15-$1.50.

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


  (END) Dow Jones Newswires

  March 22, 2016 10:07 ET (14:07 GMT)

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