Dow Jones Natural Gas - Morning Commentary

DJ Natural Gas Rises on Chance for Strong Heating Demand



  By Timothy Puko


  Natural gas prices are rising for the second-straight session on Wednesday, as this month's weather forecasts keep
showing cooler-than-normal temperatures and the chance for stronger-than-normal heating demand.

  Natural gas for May delivery was up 4.3 cents, or 1.7%, at $2.619 a million British thermal units on the New York
Mercantile Exchange.

  Weather forecasts show below-normal temperatures in the eastern half of the country through the end of April. Half of
all U.S. homes use natural gas for heat, making demand--and often prices--highest when the weather is cold.

  Power demand is also helping as cheaper natural gas prices encourage generators to move away from other fuels, said
Gene McGillian, an analyst at Tradition Energy.

  "We are seeing coal-to-gas switching that could be riding up to as high as 4.5 (billion cubic feet) a day and nuclear
outages are the highest of the season, so you do have some demand for it," he said.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.58/mmBtu, compared with Tuesday's
range of $2.53-$2.5825. Cash prices at the Transco Z6 hub in New York last traded at $2.58/mmBtu, compared with
Tuesday's range of $2.46 to $2.54.


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


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  (END) Dow Jones Newswires

  April 22, 2015 10:06 ET (14:06 GMT)

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042215 14:06 -- GMT
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