Dow Jones - Morning Natural Gas Commentary

DJ Natural Gas Weakens as Weather Stays Mild


   By Nicole Friedman


  NEW YORK--Natural-gas prices slipped near 11-month intraday lows Monday as forecasts for mild weather extended into
the second week of November.

  Futures have fallen for weeks on expectations that above-normal temperatures would damp demand for natural gas, which
is used as a heating fuel.

  Updated weather forecasts call for "a rather mild stretch of weather or lack of cold across a vast portion of the
nation" in the next 11 to 15 days, according to Andover, Mass.-based forecaster WSI Corp.

  Natural-gas production has been more robust than expected this summer. "More supply is anticipated to be available
this winter to meet peak heating demand requirements," Teri Viswanath, director of commodity strategy for natural gas
at BNP Paribas SA, said in a note.

  Natural gas for November delivery recently fell 6 cents, or 1.7%, to $3.563 a million British thermal units on the
New York Mercantile Exchange, near the lowest intraday price since last November.

  Natural gas for next-day delivery at the benchmark Henry Hub in Louisiana recently traded at $3.555/mmBtu, according
to Intercontinental Exchange Inc., versus Friday's average of $3.5324/mmBtu.

  Natural gas for next-day delivery at Transcontinental Zone 6 in New York traded between $1.85 and $2.64/mmBtu,
compared with $2.3959/mmBtu Friday.


  Write to Nicole Friedman at nicole.friedman@wsj.com


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  (END) Dow Jones Newswires

  October 27, 2014 09:26 ET (13:26 GMT)

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

102714 13:26 -- GMT
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