Dow Jones - Natural Gas Rises Off Two-Week Low

DJ Natural Gas Rises Off Two-Week Low



  By Nicole Friedman


  NEW YORK--Natural-gas prices rose from a two-week low Wednesday as weather forecasts boosted expectations for
natural-gas demand.

  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.

  Natural-gas futures for July delivery recently traded up 1.4 cents, or 0.5%, at $2.740 a million British thermal
units on the New York Mercantile Exchange.

  Traders are also looking ahead to weekly inventory data due Thursday. Natural-gas producers have injected large
amounts of gas into storage in recent weeks, suggesting that the market is oversupplied.

  However, some market watchers expect summer weather to help eat away at the surplus.

  "Though Thursday's storage report ended a three-week streak of triple-digit injections, our balances indicate
injections to be lower for the next two reports," said PIRA Energy Group in a note.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.765/mmBtu, compared with Tuesday's
range of $2.81-$2.85. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $2.65/mmBtu to
$2.70/mmBtu, compared with Tuesday's range of $2.85-$2.93.


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


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  (END) Dow Jones Newswires

  June 24, 2015 10:10 ET (14:10 GMT)

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

062415 14:10 -- GMT
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