Dow Jones Natural Gas - Morning Commentary

DJ Natural Gas Inches Up on Abnormally Cool Weather



  By Timothy Puko


  Natural gas prices inched up Tuesday, rebounding as abnormally cool spring weather forecasts suggest
stronger-than-expected demand for the heating fuel.

  Futures for May delivery rose 5.3 cents, or 2.1%, at $2.589 a million British thermal units on the New York
Mercantile Exchange. Prices have stayed within a 6-cent range.

  Now that the peak of winter demand season is past, the gas market is dominated by low volatility and traders who buy
and sell based on charts, analysts and a broker said. That has led to small seesaw moves and only a gradual and
grinding descent in prices since Christmas.

  And it is unlikely to change soon, said Frank Clements, co-owner of Meridian Energy Brokers Inc. outside New York. A
surge of below-normal temperatures forecasters are predicting for the Midwest in the coming week is enough to keep the
selloff in check and create a small rebound from back-to-back losing sessions, he said.

  "The market...is going to just [play] around between $2.48 and $2.69," Mr. Clements said. "Longer-term, the whole
thing is pointing lower, but, shorter-term, it just isn't ready to go there."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.5825/mmBtu, compared with Monday's
range of $2.52-$2.56. Cash prices at the Transco Z6 hub in New last traded at $2.50/mmBtu, compared with Monday's range
of $2.195 to $2.23.


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


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  (END) Dow Jones Newswires

  April 21, 2015 09:59 ET (13:59 GMT)

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

042115 13:59 -- GMT
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