Dow Jones - Natural Gas Retreats On Mild Weather

DJ Natural Gas Retreats on Mild Weather


   By Timothy Puko


  Natural gas prices are sliding as a mild start to fall softens expectations for demand.

  Prices for the front-month November contract fell 3.3 cents, or 1.3%, to $2.553 a million British thermal units on
the New York Mercantile Exchange. Gas is back within 10 cents of the three-year low closing price it hit April 27,
retreating from a brief surge that started the week.

  Weather forecasts are suggesting above-normal temperatures for large parts of the country in the first two weeks of
October. It is a reversal from earlier this week when they showed much larger patches of below-normal temperatures
settling in.

  Mild weather can soften energy consumption, especially in the autumn and spring when homes and offices are likely to
use less air conditioning and gas-fired heating.

  "The current forecasts are not likely to result in a major call on (natural gas) for either heating or cooling
related demand," Dominick Chirichella, analyst at the Energy Management Institute, said in a note.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.46/mmBtu, compared with Tuesday's
range of $2.53-$2.54. Cash prices at the Transco Z6 hub in New York last traded at $2.43/mmBtu, compared with Tuesday's
range of $1.95-$2.25.


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


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  (END) Dow Jones Newswires

  September 30, 2015 10:18 ET (14:18 GMT)

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

093015 14:18 -- GMT
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