Dow Jones - Natural Gas Falls Ahead of Inventory Data

DJ Natural Gas Falls Ahead of Inventory Data



  By Nicole Friedman


  NEW YORK--Natural gas prices slid Thursday ahead of weekly inventory data, which is expected to show that producers
put more natural gas in storage last week than is typical for this time of year.

  Natural gas futures for August delivery recently fell 2 cents, or 0.7%, to $2.898 a million British thermal units on
the New York Mercantile Exchange.

  Prices rose to a near-eight-week high Wednesday on forecasts for above-normal temperatures in the second half of
July, which are expected to increase demand for gas-powered electricity to run air conditioners. However, moderate
weather and robust production in the first half of the summer have kept the market well-supplied.

  Analysts and traders surveyed by The Wall Street Journal expect the Energy Information Administration to report that
natural-gas inventories grew by 95 billion cubic feet in the week ended July 10. The estimate for July 10 compares to
105 bcf added to storage for the same week last year and the 71-bcf five-year average addition for that week.

  The EIA report is due at 10:30 a.m. ET.

  If the storage estimate is correct, inventories as of July 10 totaled 2.8 trillion cubic feet, 31% above levels from
a year ago and 2.6% above the five-year average for the same week.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.90/mmBtu, compared with
Wednesday's range of $2.90-$2.9575. Cash prices at the Transco Z6 hub in New York last traded at $1.45/mmBtu, compared
with Wednesday's range of $2.84-$2.87.


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


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  (END) Dow Jones Newswires

  July 16, 2015 10:16 ET (14:16 GMT)

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

071615 14:16 -- GMT
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