DJ Natural Gas Erases Gains
By Nicole Friedman
NEW YORK--Natural gas prices fell Wednesday as mild temperatures in the next two weeks are expected to limit demand.
Extreme temperatures lead to higher natural-gas consumption, either as an indoor-heating fuel or as a source for
power generation to run air conditioners. Natural-gas demand typically declines at this time of year as mild weather
reduces the need for heating or cooling in homes and offices.
Natural gas for June delivery recently fell 3.5 cents, or 1.7%, to $2.013 a million British thermal units on the New
York Mercantile Exchange, erasing the prior day's gains.
"US natural gas contracts are losing ground this morning as an expectation of warmer temperatures ahead proves
insufficient for extending yesterday's gains," said consulting firm Schneider Electric in a note.
Traders are waiting on weekly inventory data due Thursday from the Energy Information Administration. Stockpiles of
natural gas stand 44% above five-year average levels for this time of year.
Write to Nicole Friedman at nicole.friedman@wsj.com
(END) Dow Jones Newswires
May 18, 2016 09:52 ET (13:52 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
051816 13:52 -- GMT
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