Dow Jones - Natural Gas Prices Rise On Storage Data

DJ Natural Gas Prices Rise on Storage Data


   By Nicole Friedman


  NEW YORK--Natural gas gained Thursday after weekly inventory data showed that stockpiles grew by less than expected
last week.

  Futures for September delivery rose as high as $2.781 a million British thermal units on the New York Mercantile
Exchange after the report's release. Prices were recently trading up 1.6% at $2.76/mmBtu.

  Natural gas producers put 53 billion cubic feet of natural gas in storage in the week ended Aug. 14, the U.S. Energy
Information Administration said Thursday. Analysts and traders surveyed by The Wall Street Journal had expected the
agency to report that stockpiles grew by 60 bcf.

  The smaller-than-expected build suggests that production was lower or demand was stronger than anticipated. However,
the market remains oversupplied. Stockpiles now stand at 3.03 trillion cubic feet, 2.7% above the five-year average for
the same week.

  "The market tried to pick its head up, but it doesn't look like it's lasting too long," said Gene McGillian, analyst
at Tradition Energy. "The market is focused on the dropoff in seasonal demand."

  Natural-gas prices have traded within a tight 25-cent range this summer as increased demand for gas-powered
electricity to run air-conditioning units has been balanced by robust production. Weather forecasts released Thursday
showed a mix of hot and cool temperatures across the country in the next two weeks, with warmer weather on the East
Coast.

  "The last episode of very hot weather this summer is almost certainly over," said Andy Weissman, chief executive of
EBW AnalyticsGroup, in a note. "Power sector demand is starting to decline rapidly, laying the groundwork for further
price declines for natural gas."


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


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  (END) Dow Jones Newswires

  August 20, 2015 10:50 ET (14:50 GMT)

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082015 14:50 -- GMT
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