Dow Jones Natural Gas - Morning Commentary

DJ Natural Gas Prices Retreating on Warmer Forecasts, Falling Demand



  By Timothy Puko


  Natural gas is retreating as warmer forecasts suggest falling demand.

  Natural gas for April delivery is down 4.3 cents, or 1.5%, at $2.812 a million British thermal units on the New York
Mercantile Exchange. The market has given back about half of Tuesday's gains, which had been the second largest of the
year.

  Commodity Weather Group LLC changed its forecast Wednesday to show a smaller pocket of unseasonably cool conditions
in the Northeast through the end of the month. About half of U.S. homes use natural gas for heat, and milder spring
weather leads to a dramatic dropoff in demand every year.

  Without "strong weather-related support, natural-gas prices are exhibiting normal seasonal weakness and will likely
continue to decline," said Teri Viswanath, a natural-gas strategist at BNP Paribas SA in New York.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.78/mmBtu, compared with Tuesday's
range of $2.76-$2.84. Cash prices at the Transco Z6 hub in New York last traded at $2.85/mmBtu, compared with Tuesday's
range of $2.80 to $3.00.


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


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  (END) Dow Jones Newswires

  March 18, 2015 10:11 ET (14:11 GMT)

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031815 14:11 -- GMT
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