DJ Natural Gas Extends Rally as Forecast Turns Colder
By Christian Berthelsen
Natural gas futures extended gains Monday after weekend revisions to weather outlooks projected a bigger and stronger
polar vortex over much of the U.S. in the coming days, bolstering expectations for a burst of gas-fired heating demand.
Natural gas futures for December delivery were up 1.1 cents, or 0.3%, to $4.4230 a million British thermal units on
the New York Mercantile Exchange, continuing a rally that has added more than 23% to prices since late October. Gas
futures have risen in the nine previous trading sessions.
Forecasters are predicting a larger and colder spate of weather in the coming days over the plains and Midwest
states, that will reach as far south as Texas and push eastward as well through mid-November. Though the worst is
expected to subside going into late November, temperatures are expected to remain much-below normal over the northeast,
Midwest, Plains and parts of the south, according to Commodity Weather Group.
With the appearance of extreme cold on the horizon, the U.S. heating season is getting off to a late but strong
start, which could test whether gas producers and utilities have adequately restored supplies depleted by last season's
severe winter. Natural gas stockpiles were aggressively replenished during the spring and summer, and have eclipsed the
3.5 trillion-cubic-foot mark where analysts say they should be sufficient to get through another heating season. Still,
they remain below both year-ago and average levels.
"Natural gas weather-related demand is going to be well above normal for at least the next several weeks and possibly
longer," Energy Management Institute analyst Dominick Chirichella said in a note.
In the cash market, gas for next-day delivery at the benchmark Henry Hub in Louisiana last traded at $4.1750 a
million British thermal units, above Friday's range of $3.94-$4.10. At the Transco Z6 hub in New York, gas for next-day
delivery traded in a bid-offer range of $3.25-$4.15, compared with Friday's range of $3.20-$3.55.
Write to Christian Berthelsen at Christian.Berthelsen@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwireshttp://online.wsj.com?mod=djnwires">http://online.wsj.com?mod=djnwires
>
(END) Dow Jones Newswires
November 10, 2014 09:17 ET (14:17 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
111014 14:17 -- GMT
------
No comments:
Post a Comment