Dow Jones Natural Gas - End Of Day Commentary

DJ Natural Gas Slips as Supplies Remain Ample



  (Adds tables at bottom.)


  By Nicole Friedman


  NEW YORK--Natural-gas futures declined Monday as traders weighed the currently oversupplied market against
expectations that frigid weather has boosted demand for the heating fuel.

  March futures fell 7.2 cents, or 2.4%, to settle at $2.879 a million British thermal units on the New York Mercantile
Exchange. Prices rose as high as $3.039/mmBtu in overnight trading.

  About half of U.S. households use natural gas as their primary heating fuel, and cold weather can cause price spikes
as utilities and other buyers compete for supplies. This winter, robust production and moderate temperatures have kept
prices subdued.

  Unusually cold weather settling in across the Midwest and East Coast in recent weeks has boosted prices somewhat.
Weather forecasts released Monday showed a colder outlook for the next six to 10 days, and below-normal temperatures
are expected to persist in the next 11 to 15 days, said Gaithersburg, Md.-based forecaster MDA Weather Services.

  However, "there is still plenty of gas in the system," said Martin King, analyst at FirstEnergy Capital Corp., in a
note. "Despite the cold now, the market is already looking to the spring when the Northeast will again be overflowing
with gas."

  Traders are waiting on weekly inventory data, which is released every Thursday by the U.S. Energy Information
Administration, for indications of how elevated demand for natural gas has eaten away at stockpiles of the fuel.

  As of Feb. 13, natural-gas inventories stood at 2.157 trillion cubic feet, 2.8% above the five-year average for the
week.

  Despite current low temperatures, "the seasonal warming trend will still mean smaller declines week by week, with the
traditional withdrawal season drawing to a close at the end of March," said Tim Evans, analyst at Citi Futures, in a
note.

   FUTURES            SETTLEMENT               NET CHANGE
   Nymex March        $2.879                   -7.2c
   Nymex April        $2.893                   -7.9c
   Nymex May          $2.924                   -7.9c
   CASH HUB         RANGE                        PREVIOUS SESSION
   El Paso Perm   $2.90-$3.13                    $2.77-$2.84
   El Paso SJ     $2.90-$3.12                    $2.765-$2.81
   Henry Hub      $3.15-$3.25                    $2.94-$3.13
   Katy           $3.08-$3.235                   $2.85-$2.95
   SoCal          $3.02-$3.08                    $2.87-$2.94
   Tex East M3    $16.50-$19.30                  $10.00-$14.25
   Transco 65     $3.17-$3.25                    $3.0475-$3.12
   Transco Z6     $22.00-$28.00                  $17.00-$21.00
   Waha           $3.05-$3.155                   $2.87-$2.90


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


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  (END) Dow Jones Newswires

  February 23, 2015 16:14 ET (21:14 GMT)

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

022315 21:14 -- GMT
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