DJ Natural Gas Edges Higher on Weather Outlook
By Nicole Friedman
NEW YORK--Natural gas prices ticked higher Monday as forecasts for cooler temperatures in the next two weeks boosted
demand expectations.
Natural gas for May delivery recently rose 0.6 cent, or 0.3%, to $1.908 a million British thermal units on the New
York Mercantile Exchange.
Robust production and mild demand for gas-powered heating this winter pushed the natural-gas market into oversupply.
Stockpiles stand more than 50% above their five-year average for this time of year.
Weather forecasts released Monday called for some colder weather in the next two weeks, which could increase demand
for the heating fuel. Still, demand is typically moderate at this time of year due to mild weather, and analysts don't
expect the glut of natural gas to shrink until next winter or later.
"Despite a small increase in projected weather-driven demand over the weekend, we believe natural gas is likely to
continue losing ground early this week," said Andy Weissman, chief executive of EBW AnalyticsGroup, in a note.
Write to Nicole Friedman at nicole.friedman@wsj.com
(END) Dow Jones Newswires
April 18, 2016 09:43 ET (13:43 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
041816 13:43 -- GMT
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