Dow Jones - Natural Gas Inches Up From Bargain Buyers

DJ Natural Gas Inches Up From Bargain Buyers


   By Timothy Puko


  Natural gas prices are making a small rebound as new three-year lows have encouraged bargain seekers and successful
bearish traders to buy.

  Natural gas futures for November delivery recently gained 1 cent, or 0.4%, to $2.443 a million British thermal units
on the New York Mercantile Exchange. Prices set a three-year intraday lower earlier in the morning and have bounced
since then.

  Major lows often bring bargain buyers into markets. Many traders also have placed bets that would benefit from gas
prices falling, and they may be cashing out, forcing them to buy back in to close out their trades.

  The small gains are "just because the market got so obliterated yesterday," said Phil Flynn, senior market analyst at
the Price Futures Group in Chicago.

  The heavy stockpiles and oversupply that brought prices to their lowest point since June 2012 are likely to limit
gains in the near future, Mr. Flynn said.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.32/mmBtu, compared with Thursday's
range of $2.33 to $2.40. Cash prices at the Transco Z6 hub in New York last traded at $1.52/mmBtu, compared with
Thursday's range of $2.10 to $2.20.

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


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  (END) Dow Jones Newswires

  October 02, 2015 11:04 ET (15:04 GMT)

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

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