DJ Natural-Gas Market Awaits Inventory Data
By Christian Berthelsen
Natural-gas futures were little changed as traders awaited weekly U.S. data on stockpiles of the fuel due Thursday
morning.
Natural gas for November delivery was up 0.2 cent at $3.8570 a million British thermal units on the New York
Mercantile Exchange.
Stockpiles likely increased 108 billion cubic feet in the week ended Oct. 3, according to a survey of analysts and
traders by The Wall Street Journal. If the estimate is correct, inventories will total 3.2 trillion cubic feet, 10%
below average for this time of year.
Producers and utilities are racing to replenish supplies before the start of the heating season next month after
stockpiles were severely depleted last winter, but analysts say a robust production season and mild weather should
allow inventories to recover in time.
Mild weather during the so-called shoulder season between summer cooling season and fall and winter heating season
has enabled supplies to grow, as gas demand has been weak. Those conditions are expected to continue through
mid-October, with forecasters predicting above-normal temperatures for this time of year that will keep gas-fired
heating demand at bay.
"There is just not enough heating or cooling-related demand," analyst Dominick Chirichella of the Energy Management
Institute said in a note. "Supply continues at robust levels."
In the physical market, cash prices for next-day delivery of natural gas at the benchmark Henry Hub in Louisiana last
traded at $3.8725 a million Btus, within Wednesday's range of $3.86-$3.91. There were no bids or offers for next-day
gas at the Transco Z6 hub in New York, according to ICE.
-- Write to Christian Berthelsen at christian.berthelsen@wsj.com
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(END) Dow Jones Newswires
October 09, 2014 09:11 ET (13:11 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
100914 13:11 -- GMT
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