DJ Natural Gas Keeps Sliding on Cool September Expectations
By Timothy Puko
NEW YORK--Natural-gas prices are falling for a second straight session as a cool weather forecast for mid-September
is setting low expectations for demand.
Natural gas for October delivery is down 1.9 cents, or 0.5%, at $3.871 a million British thermal units on the New
York Mercantile Exchange. Prices did briefly rise in early-morning trading, but reverted to the downward trend set
Tuesday when gas had its biggest losses in six months.
Two different cool weather patterns are likely to hit most of the country in the next two weeks, emerging now even as
several parts of the country feel their hottest weather of the summer. The Rockies and the central United States are
likely to see the most fall-like weather, with comfortable highs in the 60s and 70s early next week, according to
Weather Services International in Andover, Mass.
Temperatures in that zone are less likely to boost demand for gas heating or air conditioners run by gas-fired
electricity. Mild weather like that has already caused large losses for gas prices throughout this summer as record
production keeps overwhelming limited demand.
"I think everybody is out who needs to be out, but we're still continuing a bit of yesterday's momentum," said Scott
Gettleman, an independent trader in New York. "It's a little hard to rally right now without a reason."
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $3.92/mmBtu, compared with Tuesday's
range of $3.98-$4.04. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $3.00-3.07/mmBtu,
compared with Tuesday's range of $2.85 to $3.10.
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
September 03, 2014 09:40 ET (13:40 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
090314 13:40 -- GMT
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