Dow Jones - End of Day Commentary

DJ Natural Gas Slips on Weather Outlook



  By Nicole Friedman


  NEW YORK--Natural gas futures dropped Monday on expectations for weak demand.

  Natural gas futures for December delivery settled down 6.5 cents, or 2.8%, to $2.256 a million British thermal units
on the New York Mercantile Exchange.

  Moderate temperatures at this time of year reduce demand for natural gas as an indoor-heating fuel. Above-normal
temperatures are expected to continue in the next 11 to 15 days.

  "Natural gas futures are heading lower today after three days of new weather predictions did not contain much in the
way of cold temperatures," said energy-advisory firm Gelber & Associates in a note. "As long as heating demand remains
absent, the contract will be forced lower."

  Producers typically stop injecting natural gas into storage tanks in early November and start withdrawing fuel out of
storage to meet demand. This year, traders expect producers to keep adding to storage in the coming weeks, which could
push inventories to record levels.

  "With available storage rapidly diminishing and space heating demand potentially declining week-over-week, cash
prices are likely to decline further," said Andrew Weissman, chief executive of EBW AnalyticsGroup, in a note.

  Production remains robust, even as companies have cut spending, as drilling has gotten more efficient. Natural gas
production rose to a new record in August, the Energy Information Administration said Friday.

        FUTURES SETTLEMENT NET CHANGE

Nymex   December $2.256    -6.5c
Nymex   January  $2.448    -4.2c
Nymex   February $2.474    -3.9c

CASH HUB      RANGE        PREVIOUS SESSION
El Paso Perm $1.7625-$1.93 $1.71-$1.81
El Paso SJ   $1.775-$1.90  $1.73-$1.85
Henry Hub    $1.895-$1.95  $1.87-$2.05
Katy         $1.80-$1.90   $1.875-$1.97
SoCal        $1.93-$2.15   $1.88-$2.05
Tex East M3  $0.90-$1.08   $0.82-$1.22
Transco 65   $1.87-$1.92   $1.885-$1.98
Transco Z6   $1.38-$1.62   $1.25-$1.75
Waha         $1.78-$1.84   $1.865-$1.90


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


Subscribe to WSJ: http://online.wsj.com?mod=djnwireshttp://online.wsj.com?mod=djnwires">http://online.wsj.com?mod=djnwires
>

  (END) Dow Jones Newswires

  November 02, 2015 15:06 ET (20:06 GMT)

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

110215 20:06 -- GMT
------