Dow Jones - Natural Gas Gains As Forecasts Turn Colder

DJ Natural Gas Gains as Forecasts Turn Colder



  By Christian Berthelsen


  Natural gas prices rose Monday as weather forecasts showed temperatures in key demand regions becoming colder than
previously expected, spurring expectations for a strong start to the season for gas-fired heating.

  The front-month October natural gas contract rose 4 cents or 1.6% to $2.6040 a million British thermal units on the
New York Mercantile Exchange. Prices have gained more than 4% in recent days after touching multi-month lows as the
first cold of the season has crept into forecasts.

  "The weekend short-term weather forecasts have turned more seasonable," Energy Management Institute analyst Dominick
Chirichella said in a note. "The middle of the country is now projected to experience normal to below-normal
tempuratures, which could result in the start of heating fuel demand heading into October."

  The last of the summer season's above-normal temperatures in the Midwest and Northeast are expected to move out by
the weekend, with a swath of below-normal temps appearing from the southeast to the northwest, according to forecaster
Commodity Weather Group.

  Natural gas stockpiles have been growing after a season of strong production and mild weather that limited demand, a
factor that has weighed on the market throughout the spring and summer. The Energy Information Administration said last
week that the U.S. has 3.44 trillion cubic feet of gas in storage, 15.7% above year-ago levels and 4.5% above average
for this time of year.


   Write to Christian Berthelsen at christian.berthelsen@wsj.com


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  (END) Dow Jones Newswires

  September 28, 2015 10:50 ET (14:50 GMT)

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

092815 14:50 -- GMT
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