Dow Jones - End of Day Natural Gas Commentary

DJ Natural Gas Gains on Hot Weather


   By Nicole Friedman


  NEW YORK--Natural-gas prices rose Tuesday on expectations that late-summer heat would boost air-conditioning demand.

  Hot weather boosts demand for natural-gas-powered electricity as more households and offices turn on
air-conditioning. Natural-gas consumption typically wanes after summer heat subsides and doesn't pick up again until
cold weather spurs consumers to turn up their heat.

  Forecasts for the next five to 10 days "are predicting a continuation of hot conditions," said energy-advisory firm
Gelber & Associates in a note.

  Natural-gas futures settled up 5.5 cents, or 2.1%, to $2.710 a million British thermal units on the New York
Mercantile Exchange.

  "Continued extremely hot early September weather in the Northeast and Midwest...are likely to provide modest support
to natural gas during the first couple of days of trading this week," said Andy Weissman, chief executive of EBW
AnalyticsGroup, in a note. "By mid-week, however, temperatures should start to moderate rapidly."

  Capital Economics cut its natural-gas-price forecasts to $3.50/mmBtu at the end of this year and $4/mmBtu at the end
of next year, down from its previous estimates of $4/mmBtu at the end of 2015 and $5/mmBtu at the end of 2016. Thomas
Pugh, commodities economist at Capital Economics, said in a note that robust production and mild weather kept prices
lower than expected this year.

   FUTURES          SETTLEMENT       NET CHANGE
   Nymex October       $2.710          +5.5c
   Nymex November      $2.792          +5.1c
   Nymex December      $2.943          +4.6c

   CASH HUB             RANGE          PREVIOUS SESSION
   El Paso Perm    $2.65-$2.7275          $2.41-$2.60
   El Paso SJ      $2.6675-$2.73          $2.40-$2.60
   Henry H         $2.695-$2.76           $2.65-$2.70
   Katy            $2.65-$2.74            $2.61-$2.70
   SoCal           $2.8375-$2.87          $2.50-$2.62
   Tex East M3     $1.55-$1.68            $1.20-$1.32
   Transco 65      $2.705-$2.745          $2.65-$2.67
   Transco Z6      $1.83-$2.86            $1.60-$2.00
   Waha            $2.65-$2.73            $2.53-$2.64


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


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  (END) Dow Jones Newswires

  September 08, 2015 15:36 ET (19:36 GMT)

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

090815 19:36 -- GMT
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