Dow Jones Natural Gas - Market Set For Seventh Straight Weekly Loss

DJ Natural Gas Prices Set for Seventh Straight Weekly Loss

  By Nicole Friedman

  NEW YORK--Natural gas prices gained Friday on near-term demand expectations but were on track to post a seventh
straight weekly loss.

  Natural gas for February delivery recently rose 3.3 cents, or 1.1%, to $2.960 a million British thermal units on the
New York Mercantile Exchange. Prices are down about 1.5% on the week.

  Natural gas prices have slumped in recent weeks as strong production has kept supplies ample, while moderate weather
has limited demand for the heating fuel. About half of U.S. households use natural gas as their primary heating fuel.

  Though anticipation of colder-than-average weather this week has boosted prices a bit, futures are still trading
below the psychologically important $3/mmBtu mark, as the frigid weather is expected to subside by the second half of
the month.

  "The lobe of the polar vortex responsible for this week's cold blast is expected to rotate northward out of eastern
Canada during the upcoming weekend," said forecaster WSI Corp. in a note Friday. In the next 11 to 15 days, forecasts
call for above-normal temperatures to cover much of the nation, reducing indoor-heating demand.

  "The weather outlooks aren't too supportive," said Matt Smith, commodity analyst at Schneider Electric SA, an
energy-consulting firm. "Prices here seem unable to push back above that $3 level."

  Natural gas for next-day delivery at the benchmark Henry Hub in Louisiana recently traded at $2.96/mmBtu, according
to Intercontinental Exchange Inc., versus Thursday's average of $2.9133/mmBtu.

  Natural gas for next-day delivery at Transcontinental Zone 6 in New York traded near $4.75/mmBtu, compared with
$8.3109/mmBtu Thursday.

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


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  (END) Dow Jones Newswires

  January 09, 2015 09:36 ET (14:36 GMT)

  Copyright (c) 2015 Dow Jones & Company, Inc.

010915 14:36 -- GMT
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