Dow Jones - Natural Gas Gains As Traders Ready For Storage Update

DJ Natural Gas Gains as Traders Ready for Storage Update



  By Timothy Puko


  Natural gas prices posted small gains on Thursday in trading sharply limited by an upcoming storage update.

  Natural gas for October delivery was up 2.4 cents, or 0.9%, at $2.672 a million British thermal units on the New York
Mercantile Exchange. Prices have stayed within a 4.4-cent range Thursday morning, a time when trading and volatility
are often low ahead of the U.S. Energy Information Administration's weekly update on gas storage levels, scheduled for
10:30 a.m. EDT.

  The report is widely regarded as a leading indicator of supply and demand, and many expect this week's report to show
a strong oversupply. The average forecast of 18 analysts and traders surveyed by the Wall Street Journal shows an
addition of 86-billion-cubic feet, more than 40% larger than the five-year average.

  That had put downward pressure on prices Wednesday and early Thursday, analysts said. Tepid cooling-related demand
and near-record production are causing surpluses to rise after strong demand had brought it in line with seasonal
averages.

   "Odds are that if this comes pretty much in line or just a little bit above, we're going to continue to grind
lower," said Gene McGillian, an analyst at Tradition Energy.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.69/mmBtu, compared with
Wednesday's range of $2.69-$2.74. Cash prices at the Transco Z6 hub in New York last traded at $2.315/mmBtu, compared
with Wednesday's range of $2.81 to $2.89.


  Write to Timothy Puko at tim.puko@wsj.com


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  (END) Dow Jones Newswires

  September 03, 2015 10:29 ET (14:29 GMT)

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

090315 14:29 -- GMT
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