Dow Jones - Natural Gas Rises On Colder Weather

DJ Natural Gas Rises on Cold Weather



  By Nicole Friedman


  NEW YORK--Natural gas prices gained Monday as weather forecasts for the next two weeks called for colder temperatures
than previously expected.

  Cold weather increases demand for natural gas as an indoor-heating fuel. Weather forecasts released Monday were
"sharply cooler than Friday's over the eastern two-thirds of the nation" for the next six to 10 days, according to
forecaster WSI Corp.

  Futures for November delivery recently rose 3.2 cents, or 1.3%, to $2.462 a million British thermal units.

  The forecasts could be prompting some traders who had bet on lower prices to close out positions. As of Oct. 13,
money managers including hedge funds held one of the shortest net bearish positions on natural-gas prices on record,
according to Commodity Futures Trading Commission data going back to June 2006.

  However, forecasts are calling for warmer-than-normal temperatures in the next 11 to 15 days, which could reduce
demand.

  Moderate demand and robust production pushed the natural gas market into oversupply this summer, weighing on prices.

  "Sustained cold weather is unlikely...after the current brief cold spell along the Eastern Seaboard passes," said
Andy Weissman, chief executive of EBW AnalyticsGroup, in a note to clients.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.425/mmBtu, compared with Friday's
range of $2.36-$2.395. Cash prices at the Transco Z6 hub in New York last traded between $2.35 and $2.45/mmBtu,
compared with Friday's range of $2.40-$2.465.


  --Timothy Puko contributed to this article

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


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  (END) Dow Jones Newswires

  October 19, 2015 10:14 ET (14:14 GMT)

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

101915 14:14 -- GMT
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