DJ Natural Gas Edges Higher on Warm Weather Outlook
By Nicole Friedman
NEW YORK--Natural-gas prices rose Tuesday, as weather forecasts continued to call for above-average temperatures in
the next two weeks, which could increase demand for natural gas to power air-conditioning units.
Natural gas for October delivery recently traded up 3.7 cents, or 1%, at $3.887 a million British thermal units on
the New York Mercantile Exchange.
The forecast for the next six to 10 days shows "rather widespread above-average warmth across a good portion of the
eastern two-thirds of the nation," said Andover, Mass.-based forecaster WSI Corp. However, the outlook is less hot than
previously forecast, according to the company.
Traders are closing out positions as they wait for summer to end and the winter heating season to begin, said Frank
Clements of Meridian Energy Brokers, noting that open interest is close to its lowest level for the year.
Other factors are keeping price gains muted, said Matt Smith, commodity analyst at energy-consulting firm Schneider
Electric SA, including expectations for a larger-than-average storage build to be reported Thursday and the expiration
of the October contract Friday.
The U.S. Markit Flash Purchasing Managers Index is due at 9:45 a.m. EDT and could indicate what to expect from
industrial demand for natural gas.
Natural gas for next-day delivery at the benchmark Henry Hub in Louisiana recently traded at $3.885/mmBtu, according
to Intercontinental Exchange Inc., versus Monday's average of $3.8679/mmBtu.
Natural gas for next-day delivery at Transcontinental Zone 6 in New York traded at $2.05/mmBtu, compared with
$2.0719/mmBtu Monday.
Write to Nicole Friedman at nicole.friedman@wsj.com
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(END) Dow Jones Newswires
September 23, 2014 09:23 ET (13:23 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
092314 13:23 -- GMT
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