DJ Natural-Gas Retreats on Supply-Demand Imbalance
By Timothy Puko
NEW YORK--Natural gas closed lower Wednesday, after traders pulled back from a 12-week high because large surpluses
are likely to keep overwhelming demand.
The front-month November contract settled down 9.8 cents, or 2.4%, at $4.023 a million British thermal units on the
New York Mercantile Exchange. It was the largest one-day loss in nearly two weeks, undoing a morning jump that had
taken intraday prices to their highest point since July 10.
Record production from the unconventional drilling boom proved too much for upward momentum from technical traders.
The U.S. Energy Information Administration is likely to report Thursday that producers added around 107 billion cubic
feet of gas to stockpiles last week, according to the average forecast of 18 analysts and traders surveyed by The Wall
Street Journal. That would be 26% more than the five-year average for that time of year, EIA data shows.
"We're not using it, so, to me, it's a sell," said John Woods, president of JJ Woods Associates and a Nymex floor
trader. "I expect it to go (down) further."
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
October 01, 2014 15:12 ET (19:12 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
100114 19:12 -- GMT
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