Dow Jones End of Day Commentary - Natural Gas Drops On Short-Term Weather Forecast

DJ Natural Gas Drops on Short-Term Weather Forecast

 By Timothy Puko

  Natural-gas prices ended lower after a strong start Monday, with analysts saying near-term weather forecasts are
still too warm to overcome record supply.

  The front-month January contract settled down 7.6 cents, or 2%, at $3.719 a million British thermal units on the New
York Mercantile Exchange. Prices started the session immediately higher, opening at $3.843/mmBtu, and then steadily
retreated, losing 3.2% between the open Sunday evening and the close Monday afternoon.

  The U.S. oil and gas boom has led to record supply outpacing growth in demand. Demand is largely dependent on home
heating, and weather forecasters are still expecting above-normal temperatures through Christmas. That has traders
expecting supply to keep outpacing demand, driving prices down, analysts said.

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


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  (END) Dow Jones Newswires

  December 15, 2014 14:52 ET (19:52 GMT)

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

121514 19:52 -- GMT
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