Dow Jones - Natural Gas Slides As Demand Outlook Dims

DJ Natural Gas Slides as Demand Outlook Dims



  By Christian Berthelsen


  Natural gas futures slid Monday as weather forecasts presented a dim outlook for gas-fired heating or cooling demand,
with mild spring temperatures for much of the country through mid-May.

  Natural gas prices for June delivery were down 3.5% at $2.1020 a million British thermal units.

  Prices surged nearly 5% late Friday on news of a pipeline explosion in Pennsylvania, but the market pulled back from
those levels Monday amid little evidence of supply disruptions.

  Meanwhile, normal temperatures for the so-called shoulder season between winter and summer offered little hope of gas
demand for firing heating or air conditioning for much of the country.

  "With seasonal temperatures now emerging over the country there will still be minimal, if any, heating demand,"
Energy Management Institute analyst Dominick Chirichella said in a note.

  Though pipeline data in recent months has begun to show output declines, the market is still well supplied, with more
than 2.5 trillion cubic feet of gas in storage according to U.S. Energy Department data, about 48% more than average
for this time of year.


  Write to Christian Berthelsen at christian.berthelsen@wsj.com


  (END) Dow Jones Newswires

  May 02, 2016 10:06 ET (14:06 GMT)

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

050216 14:06 -- GMT
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