Dow Jones - Natural Gas Slips On Inventory Data

DJ Natural Gas Slips on Inventory Data


   By Nicole Friedman


  NEW YORK--Natural-gas futures fell Thursday on a weekly inventory report showing that supplies rose more than
expected last week.

  Futures for August delivery settled down 6.4 cents, or 2.2%, at $2.854 a million British thermal units on the New
York Mercantile Exchange.

  U.S. natural-gas inventories grew by 99 billion cubic feet in the week ended July 10, the Energy Information
Administration said Thursday, more than the 95 bcf that analysts surveyed by The Wall Street Journal had expected.

  Stockpiles now stand at 2.767 trillion cubic feet, 2.7% above the five-year average for the week.

  "Rapidly growing storage levels are hard to ignore," said energy-advisory firm Gelber & Associates in a note. "At
this pace, we expect jam-packed storage to be a driver of market action come this autumn."

  Moderate weather and robust production in the first half of the summer have kept the market well-supplied, but
above-normal temperatures in the next two weeks are expected to increase demand for gas-powered electricity to run air
conditioners.

  "It's still early in the summer season, so maybe the market is just not ready to sell off here," said Tom Saal, a
broker with INTL FCStone. "We've still got hotter temperatures around the corner."

   FUTURES          SETTLEMENT             NET CHANGE
   Nymex August       $2.854                -6.4c
   Nymex September    $2.853                -5.6c
   Nymex October      $2.880                -5.1c

   CASH HUB          RANGE             PREVIOUS SESSION
   El Paso Perm    $2.83-$2.86          $2.82-$2.90
   El Paso SJ      $2.83-2.855          $2.8675-2.90
   Henry Hub       $2.88-$2.9225        $2.90-$2.9575
   Katy            $2.85-$2.88          $2.86-$2.88
   SoCal           $2.98-$3.05          $3.01-$3.05
   Tex East M3     $1.28-$1.35          $1.24-$1.40
   Transco 65      $2.85-$2.90          $2.895-$2.920
   Transco Z6      $1.38-$1.60          $1.50-$2.00
   Waha            $2.845-$2.87         $2.84-$2.87


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


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  (END) Dow Jones Newswires

  July 16, 2015 15:01 ET (19:01 GMT)

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

071615 19:01 -- GMT
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