DJ Natural Gas Gains Ahead of Cooler Weather
By Nicole Friedman
NEW YORK--Natural-gas futures rose Tuesday as forecasts for colder-than-average weather in the next two weeks boosted
demand expectations, but prices held near multi-year lows as ample supplies weighed on the market.
Natural gas for May delivery recently gained 3.1 cents, or 1.2%, to $2.542 a million British thermal units on the New
York Mercantile Exchange.
Weather forecasts for the next 11 to 15 days released Tuesday called for cooler weather than previously forecast,
which could increase demand for gas-powered indoor heating.
"Sustainable price declines south of the $2.50 mark will prove arduous, especially with some cooler temperatures
showing up," said Jim Ritterbusch, president of energy-advisory firm Ritterbusch & Associates, in a note.
However, heating consumption is typically mild in the spring, keeping prices subdued.
Prices fell to their lowest point in nearly three years last week as robust supplies continued to overwhelm demand,
leading some market participants to forecast a large supply surplus by the beginning of next winter.
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.535/mmBtu, compared with Monday's
average of $2.5573. There was no trading on the Good Friday holiday. Cash prices at the Transco Z6 hub in New York last
traded at $2.20/mmBtu, compared with Monday's average of $2.0789.
Write to Nicole Friedman at nicole.friedman@wsj.com
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(END) Dow Jones Newswires
April 14, 2015 09:54 ET (13:54 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
041415 13:54 -- GMT
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