DJ Natural Gas Supply Keeps Lid on Prices
By Timothy Puko
Natural-gas prices were holding close to unchanged on Tuesday, with only small losses as healthy stockpiles put a lid
on prices.
Natural gas for September delivery fell 1.4 cents, or 0.5%, to $2.828 a million British thermal units on the New York
Mercantile Exchange. Prices are still firmly locked into the 31-cent range they have traded in for two months.
Consumption of gas-powered electricity often rises in the summer as people turn on their air-conditioning units. And
hot weather in Texas has helped boost demand in recent weeks.
But stockpiles are still 2.2% above their five-year average for this time of year, according to data from the U.S.
Energy Information Administration. Production has stayed at a near-record pace for most of the year, and that lowers
expectations that prices could shoot up from weather-related demand, said Kent Bayazitoglu, analyst at
energy-consulting firm Gelber & Associates in Houston.
Hot weather now is "not enough to make this a bullish summer," he added. "It's a little of too-little-too-late."
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.85/mmBtu, compared with Monday's
range of $2.84-$2.86. Cash prices at the Transco Z6 hub in New York last traded at $2.79/mmBtu, compared with Monday's
range of $2.46 to $2.55.
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
August 11, 2015 09:50 ET (13:50 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
081115 13:50 -- GMT
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