Dow Jones - Natural Gas Pulls Back As Bears Dismiss Weather Concerns

DJ Natural Gas Pulls Back as Bears Dismiss Weather Concerns

  By Timothy Puko

  Natural-gas futures are retreating Tuesday as bearish traders are dismissing concerns about hot weather and storms that sent the market up to start the week.

  Natural gas for July delivery fell 4.9 cents, or 1.7%, to $2.84 a million British thermal units on the New York

Mercantile Exchange. The losses push gas back toward the middle of the 55-cent trading range it has ricocheted within
for more than six weeks.

 Gas had made some of its biggest one-day gains of the year Monday, pushed by hot forecasts for June that could lead

to strong demand and by a tropical storm in the Gulf Coast that some worried might impact supply. But several traders and analysts immediately dismissed those concerns.

  Above-normal temperatures outside the depths of summer often aren't hot enough to cause a major spike in demand for cooling and gas-fired power. And storms in the Gulf Coast aren't nearly as big a threat to supplies as they used to be now that shale drilling has moved the most critical gas fields north and on shore.

  "There's nothing extreme," said Dean Hazelcorn, trader at the brokerage Coquest Inc. in Dallas. "The weather won't make that much of an impact this time of year. It has to stay [hot]. We have to know it's not going to wane and,unfortunately, it's going to wane."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.915/mmBtu, compared with Monday's range of $2.81-$2.93. Cash prices at the Transco Z6 hub in New York last traded at $3.02/mmBtu, compared with Monday's range of $2.98 to $3.04.





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





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  (END) Dow Jones Newswires



  June 16, 2015 10:32 ET (14:32 GMT)



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



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^^^^^^