DJ Natural Gas Prices Rise as Drilling Declines
By Nicole Friedman
NEW YORK--Natural gas rose Friday on expectations of falling production.
Futures for November delivery settled up 0.4 cent, or 0.2%, at $2.502 a million British thermal units on the New York
Mercantile Exchange, the highest settlement since Sept. 30. Prices rose 2.1% on the week.
The number of rigs drilling for natural gas fell by six to 189 rigs this week, the lowest level on record in drilling
data going back to mid-1987, oil-field-services company Baker Hughes Inc. said Friday.
Natural-gas drilling has declined as persistently low gas prices and the past year's plunge in oil prices have
prompted energy producers to cut spending.
U.S. natural-gas production soared in the past decade, due to new technologies enabling producers to access supplies
trapped in shale-gas fields. In recent months, output has declined but remains above year-ago levels.
"Now that production is tailing off, there's a small amount of upside reintroduced to the market," energy-advisory
firm Gelber & Associates said in a note.
FUTURES SETTLEMENT NET CHANGE
Nymex November $2.502 0.4c
Nymex December $2.718 0.6c
Nymex January $2.857 1.0c
CASH HUB RANGE PREVIOUS SESSION
El Paso Perm $2.255-$2.315 $2.34-$2.3525
El Paso SJ $2.27-$2.295 $2.335-$2.35
Henry Hub $2.35-$2.42 $2.40-$2.46
Katy $2.34-$2.44 $2.36-$2.41
SoCal $2.40-$2.56 $2.47-$2.54
Tex East M3 $0.77-$0.86 $0.92-$0.97
Transco 65 $2.33-$2.38 $2.38-$2.42
Transco Z6 $2.00-$2.30 $2.26-$2.38
Waha $2.28-$2.33 $2.37-$2.37
Write to Nicole Friedman at nicole.friedman@wsj.com
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(END) Dow Jones Newswires
October 09, 2015 17:28 ET (21:28 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
100915 21:28 -- GMT
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