Dow Jones - Natural Gas Gains As Cooling Front Fades

DJ Natural Gas Gains as Cooling Front Fades



  By Christian Berthelsen


  Natural gas futures rose Wednesday as new forecasts said a hoped-for cooling-off after a spate of high temperatures
in the Midwest and eastern seaboard would be less intense than expected, increasing expectations for gas-fired summer
air conditioning.

  Natural gas futures for September delivery were up 3 cents, or 1.1%, at $2.85 a million British thermal units on the
New York Mercantile Exchange, on pace for its third straight gain. The market has wavered in recent weeks as the first
sustained summer heat has started to kick in, gaining 2.5% since last week.

  Natural gas demand rises during the summer to meet power-generation demand as homes and offices turn on the air
conditioning. Temperatures have been surging in the East, and now forecasts say an anticipated cooling front in the
coming weeks will be smaller and weaker than previously expected.

  "There are reports of elevated power generation demand for natural gas across the U.S., as air conditioning demand
ticks higher," research consultancy Hightower Report said in a note.

  In physical gas markets, cash prices for next-day delivery at the benchmark Henry Hub last traded at $2.9075 a
million Btus, above Tuesday's range of $2.84-$2.89. Prices at the Transco Z6 hub in New York last traded at $3.00 a
million Btus, within Tuesday's range of $2.96.-$3.01.


  Write to Christian Berthelsen at christian.berthelsen@wsj.com


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  (END) Dow Jones Newswires

  July 29, 2015 10:16 ET (14:16 GMT)

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

072915 14:16 -- GMT
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