Dow Jones - Natural Gas Slides To 17-Year Low

DJ Natural Gas Slides to 17-Year Low



  By Nicole Friedman


  NEW YORK--Natural gas prices fell to fresh lows Friday as a glut of fuel continued to weigh on the market.

  Natural gas futures for April delivery recently fell 0.1 cent, or 0.1%, to $1.638 a million British thermal units on
the New York Mercantile Exchange, on track for the lowest settlement since 1999.

  Natural-gas prices have plunged in recent weeks as robust production and sluggish demand added to the oversupply of
the fuel. Demand for natural gas is typically strong in the winter, but mild temperatures across much of the U.S. have
limited consumption.

  As of Feb. 26, natural-gas inventories stood at 2.536 trillion cubic feet, 36% above the five-year average for this
time of year, the U.S. Energy Information Administration said Thursday.

  The surplus could grow in the coming weeks, analysts said, as winter comes to an end.

  "As the market loses the final little bit of winter heating demand ... this should continue to keep bearish pressure
on price, or at least eliminate potential for much upside movement, over the next six weeks," said Breanne Dougherty,
analyst at Societe Generale, in a note.

  Warmer-than-normal weather is expected to continue through most of the month, said Commodity Weather Group LLC in a
note.

  "This market continues to exhibit absolutely no evidence of a price bottom," said Jim Ritterbusch, president of
energy-advisory firm Ritterbusch & Associates, in a note. "The price decline as early as next week to below ... $1.50
is looking increasingly likely, but even lower levels are within reason."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $1.485/mmBtu, compared with
Thursday's range of $1.515-$1.64. Cash prices at the Transco Z6 hub in New York last traded at $1.20/mmBtu, compared
with Thursday's range of $1.71-$1.95.


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


  (END) Dow Jones Newswires

  March 04, 2016 09:49 ET (14:49 GMT)

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

030416 14:49 -- GMT
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