Dow Jones - Natural Gas Inches Up Helped By Room In Storage

DJ Natural Gas Inches Up, Helped by Room in Storage



  By Timothy Puko


  Natural gas prices are making small gains for a second-straight session thanks to smaller-than-expected additions to
stockpiles, analysts said.

  Natural gas futures for October delivery recently gained 1.8 cents, or 0.7%, to $2.701 a million British thermal
units on the New York Mercantile Exchange. Despite the gains, prices--already in a narrow range for months--are still
stuck in an even narrower range of 11 cents that they have traded in for nearly three weeks.

  Prices rallied Thursday after the U.S. Energy Information Administration said producers added 68 billion cubic feet
of natural gas to storage in the week ended Sept. 2. That is 7 bcf lower than the average forecast of 19 analysts and
traders surveyed by The Wall Street Journal.

  It shows hot temperatures are causing stronger-than-recognized demand for gas-fired power to run air conditioners,
said Teri Viswanath, a natural-gas strategist at BNP Paribas SA in New York. Relatively smaller additions like this
could keep storage from filling up, she added.

  "The late-breaking summer heat limits inventory restocking, possibly reducing the downside risk for prices in the
final stretch of the season," Ms. Viswanath said.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.67/mmBtu, compared with Thursday's
range of $2.69-$2.77. Cash prices at the Transco Z6 hub in New York last traded at $1.59/mmBtu, compared with
Thursday's range of $2.38-$2.42.


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


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  (END) Dow Jones Newswires

  September 11, 2015 10:23 ET (14:23 GMT)

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

091115 14:23 -- GMT
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