Dow Jones - End of Day Commentary

DJ Natural Gas Prices Hit Five-Month Low -- Update

  By Nicole Friedman

  NEW YORK--Natural gas prices fell to a near-five-month low Monday on expectations of a seasonal decline in demand.

  Natural gas futures for October delivery settled down 3.2 cents, or 1.2%, at $2.573 a million British thermal units
on the New York Mercantile Exchange, the lowest settlement since April 28. Prices have fallen for five straight
sessions.

  Natural gas consumption typically falls at the end of summer, as fewer people use gas-powered electricity to run
air-conditioning units. The industry stores up gas over the fall to prepare for the winter, when demand can spike amid
robust heating demand.

  Weather forecasts released Monday called for hotter weather in the next two weeks than previously expected.

  At this time of year, above-average temperatures mean that the weather will be mild -- too cool for much
air-conditioning use and too warm for indoor heating, said EBW AnalyticsGroup in a note.

  Wolfe Research on Monday cut its natural-gas price forecasts to $3 a thousand cubic feet this year and $3.50/mcf in
2017.

  "We now expect U.S. natgas prices in 2016 to look a lot like 2015--reflecting a continuing oversupply and low demand
growth," the research firm said in a note.

   FUTURES SETTLEMENT NET CHANGE

   Nymex October $2.573 -3.2c

   Nymex November $2.642 -3.4c

   Nymex December $2.798 -3.3c

   CASH HUB RANGE PREVIOUS SESSION

   El Paso Perm $2.45-$2.55 $2.47-$2.5125

   El Paso SJ $2.495-$2.55 $2.47-$2.52

   Henry Hub $2.575-$2.615 $2.61-$2.65

   Katy $2.525-$2.62 $2.57-$2.61

   SoCal $2.65-$2.71 $2.60-$2.65

   Tex East M3 $1.32-$1.39 $1.24-$1.42

   Transco 65 $2.53-$2.56 $2.56-$2.60

   Transco Z6 $2.00-$2.23 $1.55-$1.70

   Waha $2.54-$2.4975 $2.515-$2.515

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

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  (MORE TO FOLLOW) Dow Jones Newswires

  September 21, 2015 15:42 ET (19:42 GMT)

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

092115 19:42 -- GMT
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