DJ Natural-Gas Rally Inches Higher on Warm Weather Forecasts
By Timothy Puko
NEW YORK--Natural-gas prices closed barely higher Monday, advancing a new
three-week high as weather forecasts show summer heat on the way.
The front-month September contract settled up 0.3 cent, or 0.1%, to $3.965 a
million British thermal units on the New York Mercantile Exchange. It was the
highest closing price since July 16 and the market crested at $4 overnight for
the first time since then. It was the fifth gain in the last six sessions.
Though forecasts show a mix of above- and below-normal temperatures for parts
of the country, ultimately the forecast is bullish, according to Commodity
Weather Group. Heat causes people to turn on air conditioning and use more
gas-fired electricity, and the trend developing about a week out shows some of
strongest heat waves in what has been a mild season.
Traders were divided, however, because the heat doesn't appear to have
staying power, said Aaron Calder, senior market analyst at energy-consulting
firm Gelber & Associates in Houston. Forecasts show cold fronts from Canada
pushing back into view late next week, limiting the interest traders have at
pushing the price up, he said.
"This is a weather rally right here and this is about all it's going to
give," said John Woods, president of JJ Woods Associates and a Nymex floor
trader.
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
August 11, 2014 15:03 ET (19:03 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
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