DJ Natural Gas Rises on Chance for Strong Heating Demand
By Timothy Puko
Natural gas is seeing its biggest gains in nearly two weeks as weather forecasts keep growing cooler, raising hopes
for larger-than-normal heating demand.
Natural gas for May delivery is up 5.7 cents, or 2.3%, at $2.587 a million British thermal units on the New York
Mercantile Exchange. The market hasn't seen gains of more than 1.2% in a day since April 2.
Weather forecasts show solidly below-normal temperatures covering the middle of the country early next week, and
possibly spreading into the Northeast during late April. Half of all U.S. homes use natural gas for heat, making
demand--and often prices--highest when the weather is cold.
Record production has tailed off slightly in recent months and prices that have already fallen 45% from a year ago
leave very little room for people to make money by selling, Jim Ritterbusch, president of energy-advisory firm
Ritterbusch & Associates, said in a note to clients.
"It is still difficult to construct a bullish case," Mr. Ritterbusch said. "But at the end of the day, we are
beginning to see more upside than downside risk in this market."
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.595/mmBtu, compared with Tuesday's
range of $2.535-$2.58. Cash prices at the Transco Z6 hub in New York last traded at $2.28/mmBtu, compared with
Tuesday's range of $2.18 to $2.35.
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
April 15, 2015 10:11 ET (14:11 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
041515 14:11 -- GMT
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