Dow Jones Natural Gas - End of Day Commentary

DJ Natural Gas Prices Retreat on Warmer Forecasts, Growing Stockpiles


 By Timothy Puko


  Natural gas retreated Wednesday as expectations grew for the year's first addition to stockpiles and warmer forecasts
suggested falling demand.

  Natural gas for April delivery settled down 6.3 cents, or 2.3%, at $2.723 a million British thermal units on the New
York Mercantile Exchange. It is down in four of the past five sessions and closed at its lowest point in more than a
week.

  Some weather forecasts are showing above-normal temperatures for most of the country next week, a day after they
showed lingering winter cold. About half of U.S. homes use natural gas for heat, and milder spring weather would lead
to a dramatic dropoff in demand.

  Analysts and brokers are also expecting the first addition to stockpiles of 2015. The U.S. Energy Information
Administration is scheduled to release its weekly gas storage update on Thursday at 10:30 a.m. EDT. Producers likely
added 10 billion cubic feet, according to The Wall Street Journal's survey of 18 brokers and traders.

  An addition this early in the year could be a sign that stockpiles will grow at a rapid pace this summer, said Bob
Yawger, director of the futures division at Mizuho Securities USA Inc. That would encourage more selling.

  "We could test $2.70 in no time, but I don't think it's going to fall apart here," he added.

FUTURES       SETTLEMENT        NET CHANGE
Nymex April     $2.723            -6.3c
Nymex May       $2.74             -7c
Nymex June      $2.788            -6.6c

CASH HUB                  RANGE                   PREVIOUS SESSION
El Paso Perm           $2.42-$2.45                   $2.44-$2.475
El Paso SJ             $2.41-$2.44                  $2.415-$2.46
Henry Hub              $2.73-$2.79                   $2.75-$2.7975
Katy                   $2.64-$2.70                   $2.67-$2.74
SoCal                  $2.51-$2.55                   $2.50-$2.57
Tex East M3           $1.595-$1.86                   $1.82-$2.18
Transco 65             $2.66-$2.6975                $2.675-$2.7675
Transco Z6             $2.50-$2.70                  $2.645-$2.74
Waha                   $2.53-$2.58                  $2.555-$2.60


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


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  (END) Dow Jones Newswires

  March 25, 2015 16:42 ET (20:42 GMT)

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

032515 20:42 -- GMT
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