Dow Jones - Natural Gas Rises On Hotter Forecast

DJ Natural Gas Rises on Hotter Forecast


   By Nicole Friedman


  NEW YORK--Natural gas prices rose Tuesday as forecasts for the next two weeks turned hotter, boosting demand
expectations.

  Summer heat increases demand for air conditioning, leading to higher consumption of gas-powered electricity. Prices
have declined in recent weeks as traders looked past summer to fall, when demand typically eases as the weather gets
more moderate.

  But a bout of "highly anomalous late summer heat" is forecast to spread across the eastern and southern U.S. in the
next six to 10 days, said forecaster WSI Corp. on Tuesday.

  Futures for October delivery recently traded up 2.8 cents, or 1%, at $2.717 a million British thermal units on the
New York Mercantile Exchange.

  "Prices are slightly higher as the heat wave engulfs major parts of the country," said Dominick Chirichella, analyst
at the Energy Management Institute, in a note.

  However, he added, "the market is not overly excited as the summer cooling season is winding down and the start of
the lower-demand ...season is right around the corner."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.745/mmBtu, compared with Monday's
range of $2.66-$2.70. Cash prices at the Transco Z6 hub in New York last traded at $2.88/mmBtu, compared with Monday's
range of $2.76-$2.87.


  Write to Nicole Friedman at nicole.friedman@wsj.com


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  (END) Dow Jones Newswires

  September 01, 2015 09:54 ET (13:54 GMT)

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

090115 13:54 -- GMT
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