Dow Jones - Natural Gas Losing Again On Heavy Surplus

DJ Natural Gas Losing Again on Heavy Surplus



  By Timothy Puko


  Natural gas prices are falling Friday, as traders continue reacting to data from Thursday that suggested an
oversupplied market.

  Natural gas for July delivery fell 2.6 cents, or 0.9%, at $2.799 a million British thermal units on the New York
Mercantile Exchange. It is the second day of a retreat after futures ran up 12% in just three days to start the week.

  The U.S. Energy Information Administration said Thursday that last week's addition to gas stockpiles hit 111 billion
cubic feet. That suggests the market was oversupplied by more than 3 billion cubic feet a day, according to analysts'
estimates.

  While the addition nearly matched expectations exactly, prices had run up so far earlier in the week that many
day-traders likely needed a much greater miss and a continued run up in prices in order to justify staying in their
positions, several market participants said. Without it, they sold off and created momentum for more selling to stretch
into a second session.

  "You've got to take the money where it is," said John Woods, president of JJ Woods Associates and a Nymex trader.
"You had a nice run."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.79/mmBtu, compared with Thursday's
range of $2.85-$2.8875. Cash prices at the Transco in New York traded in a bid-ask range of $2.60/mmBtu to $2.79/mmBtu,
compared with Thursday's range of $2.90 to $3.05.


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


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  (END) Dow Jones Newswires

  June 12, 2015 09:48 ET (13:48 GMT)

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

061215 13:48 -- GMT
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