DJ Natural Gas Prices Tick Higher
By Nicole Friedman
NEW YORK--Natural-gas prices continued to lift off three-year lows Monday as traders who had bet on lower prices
closed out wagers.
Futures for November delivery recently rose 3.4 cents, or 1.4%, to $2.485 a million British thermal units on the New
York Mercantile Exchange.
Prices slid to a three-year low Thursday as the surplus of gas continued to grow due to robust production.
Natural-gas consumption typically falls at this time of year, as few consumers use gas-powered electricity to run
air-conditioning units or buy natural gas for indoor heating. The lack of demand is keeping prices below $2.50/mmBtu,
said Teri Viswanath, director of commodity strategy for natural gas, in a note Monday.
However, expectations of increased demand this winter could keep prices supported, analysts said. "Look for the
market to stabilize a bit down here as some of the [traders who had bet on lower prices] take profits," Frank Clements,
co-owner of Meridian Energy Brokers, said in a note.
Houston investment bank Tudor, Pickering, Holt & Co. lowered its natural-gas price forecast from $4 a thousand cubic
feet in 2016 to $3/mcf. "Absolute volumes have surprised to the upside" and demand has been weaker than anticipated,
the bank said in a note.
Write to Nicole Friedman at nicole.friedman@wsj.com
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(END) Dow Jones Newswires
October 05, 2015 10:41 ET (14:41 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
100515 14:41 -- GMT
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