natural gas

natural gas

Tuesday, March 22, 2016

Dow Jones - End of Day Commentary

DJ Natural Gas Rises on Weather Outlook



  By Nicole Friedman


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

  Futures for April delivery settled up 3.5 cents, or 1.9%, at $1.863 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.

  Natural-gas production in the lower 48 states rose to a record high of 73.3 billion cubic feet per day in February,
according to analytics firm Platts Bentek.

  "Production remains high and demand is still underdeveloped," said energy-advisory firm Gelber & Associates in a
note.

  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.

    FUTURES SETTLEMENT    NET CHANGE
    Nymex    April $1.863   +3.5c
    Nymex    May $1.937     +3.3c
    Nymex    June $2.035    +3.6c
    CASH HUB     RANGE         PREVIOUS SESSION
    El Paso Perm $1.58-$1.61   $1.59-$1.63
    El Paso SJ   $1.60-$1.62   $1.61-$1.63
    Henry Hub    $1.74-$1.775  $1.74-$1.77
    Katy         $1.735-$1.765 $1.77-$1.84
    SoCal        $1.67-$1.69   $1.675-$1.685
    Tex East M3  $1.12-$1.19   $1.135-$1.25
    Transco 65   $1.71-$1.7475 $1.72-$1.77
    Transco Z6   $1.20-$1.25   $1.15-$1.50
    Waha         $1.62-$1.64   $1.68-$1.685


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


  (END) Dow Jones Newswires

  March 22, 2016 15:23 ET (19:23 GMT)

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

032216 19:23 -- GMT
------

No comments:

Post a Comment