Dow Jones - End of Day Commentary

DJ Natural Gas Rises Ahead of Inventory Data

  By Nicole Friedman


  NEW YORK--Natural-gas prices ticked higher Wednesday ahead of weekly inventory data, which is expected to show that
supplies have increased by less than is typical for this time of year.

  Natural-gas futures for July delivery settled up 3.3 cents, or 1.2%, at $2.759 a million British thermal units on the
New York Mercantile Exchange.

  Natural-gas stockpiles typically grow between April and October, as producers store the heating fuel ahead of the
winter, when consumption usually peaks. Producers have injected large amounts of natural gas into storage in recent
weeks, suggesting that robust production is keeping the market oversupplied.

  The U.S. Energy Information Administration is due to release its inventory data for the week ended Thursday. Analysts
and traders surveyed by The Wall Street Journal expect the agency to report that stockpiles grew by 78 billion cubic
feet in the week, less than the five-year average build for that week of 86 bcf.

  "The market is moving sideways today in anticipation of tomorrow's number," said Aaron Calder, analyst at Gelber &
Associates, in a note. "Most likely it will show that the market remains oversupplied but the heat is creating enough
overall power generation demand to keep natural gas usage at normal levels."

  Summertime heat is typically bullish for natural-gas prices, as households and offices use more gas-powered
electricity to run air-conditioning units. While weather forecasts are calling for cool temperatures in the coming two
weeks, the outlook is slightly warmer than previously expected, said Commodity Weather Group LLC in a note.

FUTURES           SETTLEMENT             NET CHANGE
Nymex July        $2.759                 +3.3c
Nymex August      $2.782                 +3.6c
Nymex September   $2.795                 +3.4c

CASH HUB             RANGE                    PREVIOUS SESSION
El Paso Perm         $2.67-$2.735             $2.69-$2.76
El Paso SJ           $2.66-$2.72              $2.665-$2.76
Henry Hub            $2.745-$2.81             $2.81-$2.85
Katy                 $2.70-$2.74              $2.75-$2.79
SoCal                $2.80-$2.96              $2.80-$2.96
Tex East M3          $1.32-$1.40              $1.475-$1.535
Transco 65           $2.75-$2.785             $2.77-$2.835
Transco Z6           $2.48-$2.65              $2.85-$2.93
Waha                 $2.70-$2.735             $2.73-$2.78

  Write to Nicole Friedman at nicole.friedman@wsj.com


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  (END) Dow Jones Newswires

  June 24, 2015 15:44 ET (19:44 GMT)

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

062415 19:44 -- GMT
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