Dow Jones - Morning Natural Gas Commentary

DJ Natural Gas Hovers Near 11-Month Lows


   By Nicole Friedman


  NEW YORK--Natural-gas prices edged higher Tuesday but held near 11-month lows on expectations of tepid heating demand
in the coming weeks.

  Natural gas for November delivery rose 1.2 cents, or 0.3%, to $3.573 a million British thermal units on the New York
Mercantile Exchange.

  Prices have slid for weeks on indications that the winter-heating season, typically the strongest time of the year
for natural-gas demand, would not be off to an early start. About half of U.S. households use natural gas as their
primary heating fuel.

  Forecasts are calling for mostly above-normal temperatures in the next two weeks, though Tuesday's projections are
slightly cooler than prior forecasts.

  "This weekend should see temperatures in the East at the coolest levels since about middle April," said forecaster
Commodity Weather Group LLC in a note Tuesday. "But by the middle of next week, the modeling is in good agreement on
widespread warming for the Midwest, East and South."

  Natural gas for next-day delivery at the benchmark Henry Hub in Louisiana recently traded at $3.51/mmBtu, according
to Intercontinental Exchange Inc., versus Monday's average of $3.5447/mmBtu.

  Natural gas for next-day delivery at Transcontinental Zone 6 in New York traded between $2.57 and $3/mmBtu, compared
with $2.7404/mmBtu Monday.


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


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  (END) Dow Jones Newswires

  October 28, 2014 09:40 ET (13:40 GMT)

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102814 13:40 -- GMT
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