DJ Natural Gas Inches Up in Calm Trading
By Timothy Puko
Natural gas prices are inching up as the chance for rising demand and falling production lift the market for the
sixth time in seven sessions.
Natural gas for June delivery is up 1.8 cents, or 0.7%, at $2.798 a million British thermal units on the New York
Mercantile Exchange. Trading has been calm, limited to a 5.1-cent range.
The market has recently seen its most sustained rally since February, on signs that production is falling off and
that power plants may have increased the amount of gas they started to use after prices hit a nearly three-year low.
Talk of an early start to hurricane season also has some people buying, because of its historical, though waning,
connection to demand spikes, said Bob Yawger, director of the futures division at Mizuho Securities USA Inc.
But the rally has been stalling, and gains have been limited Wednesday, because the market was so oversupplied that
the ongoing changes have a limited impact, Mr. Yawger said.
"I don't think anyone wants to commit to a large, long-term bullish position when people are going to be talking
about 'Where are we going to stuff all this gas?' in August," he said.
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.76/mmBtu, compared with Tuesday's
range of $2.7475-$2.78. Cash prices at the Transco Z6 hub in New York last traded at $2.77/mmBtu, compared with
Tuesday's range of $2.78 to $2.83.
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
May 06, 2015 10:04 ET (14:04 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
050615 14:04 -- GMT
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