Dow Jones - Morning Natural Gas Commentary

DJ Natural Gas Holds, with Traders Divided on Demand


   By Timothy Puko


  NEW YORK--Natural gas is rising slightly Tuesday, with traders still divided between strong supply and the oncoming
winter demand season.

  Natural gas for November delivery inched up 2.8 cents, or 0.7%, at $3.944 a million British thermal units on the New
York Mercantile Exchange. Trading has stayed within about a 4-cent range.

  "It's completely dead," said Scott Gettleman, an independent trader in New York. "The market looks like it wants to
rally, but it's just not doing anything right now."

  Prices have largely stayed between $3.80/mmBtu and $4/mmBtu since mid-July. Record supply has capped prices, but some
traders have also been pushing to add a risk premium in case demand spikes cause prices to shoot up in an extremely
cold winter.

  Jim Ritterbusch said it was difficult to advise clients to buy or sell in this environment. Mr. Ritterbusch,
president of energy-advisory firm Ritterbusch & Associates, said prices are likely to stay in the range around $4/mmBtu
through the end of the month and probably into November.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $3.915/mmBtu, compared with Monday's
range of $3.855-$3.88. Cash prices at the Transco Z6 hub in New York last traded at $2.15/mmBtu, compared with Monday's
range of $1.98 to $2.085.


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


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  (END) Dow Jones Newswires

  October 14, 2014 09:30 ET (13:30 GMT)

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

101414 13:30 -- GMT
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