Dow Jones - Natural Gas Rises On Hotter Forecasts

DJ Natural Gas Rises on Hotter Forecasts

  By Nicole Friedman

  NEW YORK--Natural gas prices gained Wednesday for a third straight session as forecasts for hot weather in Texas
boosted expectations for higher gas demand.

  Natural gas use rises in the summers when households and offices use more electricity to power air-conditioning
units. Forecasts released Wednesday called for hotter weather in Texas and the Southern U.S. than previously expected,
with temperatures in Houston and Dallas expected to exceed 100 degrees over the weekend and next week, according to
forecaster Commodity Weather Group LLC.

  Futures for September delivery traded up 5 cents, or 1.8%, at $2.862 a million British thermal units on the New York
Mercantile Exchange.

  Robust production has outweighed demand this summer, leaving natural-gas stockpiles at a surplus to the five-year
average. Inventory data for the week ended July 31 is due on Thursday.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.8575/mmBtu, compared with
Tuesday's range of $2.795-$2.86. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $1.55/mmBtu
to $2/mmBtu, compared with Tuesday's range of $1.93-$2.05.

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

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  (END) Dow Jones Newswires

  August 05, 2015 09:33 ET (13:33 GMT)

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

080515 13:33 -- GMT
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