Dow Jones - Morning Natural Gas Commentary

DJ Natural-Gas Prices Fall on Strong Supply and Technical Trading

  By Timothy Puko

  NEW YORK--Natural-gas prices slipped Friday for a second day as traders stayed focused on the healthy supply
overwhelming the market.

  Natural gas for October delivery is down 5.2 cents, or 1.3%, at $3.858 a million British thermal units on the New
York Mercantile Exchange. Losses mounted in early-morning trading and then flattened out within about 10 minutes after
the trading floor opened.

  Natural gas began its retreat Thursday, with a larger-than-expected surplus helping push prices back from a brief
crest above $4/mmBtu. With comfortable September weather settling in--limiting demand spikes for gas to heat homes or
run air conditioners--technical traders are driving the market, pushing it down as it reaches $4/mmBtu and pushing it
up when it dips below $3.80, said John Woods, president of JJ Woods Associates and a Nymex floor trader.

  "I don't see any weather out there that's going to put us in either direction," Mr. Woods said. The market is trading
"merely a point on a chart."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $3.865/mmBtu, compared with
Thursday's range of $3.94-$3.995. Cash prices at the Transco Z6 hub in New York last traded at $1.63/mmBtu, compared
with Thursday's range of $2.00 to $2.35.

  Write to Timothy Puko at tim.puko@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwireshttp://online.wsj.com?mod=djnwires">http://online.wsj.com?mod=djnwires
>

  (END) Dow Jones Newswires

  September 19, 2014 10:03 ET (14:03 GMT)

  Copyright (c) 2014 Dow Jones & Company, Inc.

091914 14:03 -- GMT
------