Dow Jones Natural Gas - Morning Commentary

DJ Natural Gas Boosted by Hotter Weather Forecasts



  By Timothy Puko


  Natural gas prices are rebounding from several losing sessions on Monday, as hotter weather forecasts suggest a
chance for rising demand.

  Prices for the front-month July contract rose 7.5 cents, or 2.9%, to $2.665 a million British thermal units on the
New York Mercantile Exchange. Gains on Monday would bring the first winning session in nearly a week.

  Weather forecasts are suggesting unseasonably warm temperatures in the Midwest and parts of the East Coast for about
the next week. It won't be "a major sustained heat wave," but temperatures could push into the mid-90s in the lower
Mid-Atlantic region, Commodity Weather Group LLC in Bethesda, Md., said in a note.

  That is enough to buoy gas prices, which often rise as people turn on their air conditioners and power plants have to
burn more gas to meet the demand, a broker and analyst said. Some traders have become concerned that prices have fallen
too far for early June, when there is still a chance ahead for a long, hot summer to ramp up demand.

  "Natural gas is a very volatile commodity," said Tom Saal, a broker at INTL FCStone Latin America in Miami. "We've
got a little bit of weather, it doesn't have to be a lot, and (the market) shows some sensitivity to it."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.635/mmBtu, compared with Friday's
range of $2.53-$2.60. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $1.60/mmBtu to
$2.65/mmBtu, compared with Friday's range of $1.30 to $1.40.


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


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  (END) Dow Jones Newswires

  June 08, 2015 09:22 ET (13:22 GMT)

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

060815 13:22 -- GMT
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