Dow Jones - Natural Gas Retreats As Autumn Nears

DJ Natural Gas Retreats as Autumn Nears



  By Timothy Puko


  Natural-gas prices are falling Wednesday as traders anticipate mild autumn weather to cause people to use less air
conditioning and gas-fired power.

  Prices for the front-month October contract fell 4.7 cents, or 1.7%, to $2.663 a million British thermal units on the
New York Mercantile Exchange. Prices have fallen into an 11-cent range near the seasonal low for more than two weeks
now, with the approaching end of summer weighing on the market.

  Cooling and heating are natural gas's primary drivers for demand, and U.S. weather is about to head into a mild
period that weakens demand for both. Near-record production has already kept prices relatively low and stable as
90-degree heat has lingered over large urban markets, showing that prices could fall even further as demand shrinks in
the coming weeks, analysts said.

  "As you slide from the beginning of September to the end...you don't worry too much about above-normal temperatures,"
said Gene McGillian, an analyst at Tradition Energy. "With the idea of a seasonal demand drop off and production
ramping up for the winter, that lower band (for prices) is going to get a test."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.7025/mmBtu, compared with
Tuesday's range of $2.695-$2.76. Cash prices at the Transco Z6 hub in New York last traded at $2.60/mmBtu, compared
with Tuesday's range of $2.83-$2.86.


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


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  (END) Dow Jones Newswires

  September 09, 2015 10:00 ET (14:00 GMT)

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

090915 14:00 -- GMT
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