Dow Jones Natural Gas - Prices Rise On Colder Forecasts

DJ Natural Gas Rises on Slightly Colder Forecasts


   By Nicole Friedman


  NEW YORK--Natural-gas prices bounced higher on Friday as weather forecasts turned slightly colder, which could
increase demand for the heating fuel.

  Natural gas for January delivery rose 12.1 cents, or 3.3%, to $3.755 a million British thermal units on the New York
Mercantile Exchange.

  Warmer-than-normal weather this month has kept natural-gas prices subdued amid tepid demand for indoor heating. About
half of U.S. households use natural gas as their primary heating fuel.

  But some forecasts showed temperatures getting slightly colder in the next 11 to 15 days.

  "The market is seeing some overnight strength as some private forecasts are beginning to suggest some temperature
normalization out toward the Christmas holiday period," said energy-advisory firm Ritterbusch & Associates in a note.

  In addition, prices often rise on Fridays as traders close out positions ahead of the weekend, in case temperature
forecasts shift before markets reopen Sunday night.

  Some market watchers are looking beyond December to January and February, when the coldest temperatures of the season
sometimes occur.

  "The prospect of the peak of the bleak mid-winter...is encouraging traders to look beyond immediately bearish
conditions," said Matt Smith, commodity analyst at Schneider Electric SA, an energy-consulting firm, in a note.

  Natural gas for next-day delivery at the benchmark Henry Hub in Louisiana recently traded at $3.57/mmBtu, according
to Intercontinental Exchange Inc., versus Thursday's average of $3.6754/mmBtu.

  Natural gas for next-day delivery at Transcontinental Zone 6 in New York traded at $3.77/mmBtu, compared with
$3.7475/mmBtu Thursday.


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


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  (END) Dow Jones Newswires

  December 12, 2014 10:13 ET (15:13 GMT)

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

121214 15:13 -- GMT
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