Dow Jones - End of Day Commentary

DJ Natural Gas Falls on Weak Demand Expectations


   By Nicole Friedman


  NEW YORK--Natural-gas prices slipped Wednesday on concerns about ample supplies.

  Moderate weather has kept demand for the heating fuel subdued, allowing storage inventories to grow above average
levels. Weather-driven demand is usually strong enough at this time of year that stockpiles shrink each week as
producers draw natural gas out of storage. But this year, analysts expect that producers are still injecting more fuel
into storage than consumers are withdrawing.

  Forecasts released Wednesday showed warmer weather in the next two weeks than previously expected, with East Coast
cities seeing temperatures above 60 degrees, according to Commodity Weather Group LLC.

  Natural-gas futures for December delivery settled down 5.7 cents, or 2.5%, at $2.263 per million British thermal
units on the New York Mercantile Exchange.

  "A very mild November has led many in the market to think that the rest of winter might be warmer-than-normal,
thereby leading to even lower prices," said analysts at Citigroup Inc. in a note Wednesday. "As the market continues to
struggle with uncertainty over winter weather conditions, prices may stay low and volatile for some time."

  Natural-gas inventories stood 3.9% above the five-year average for this time of year as of Oct. 30, according to the
Energy Information Administration. Inventory data for the week ended Nov. 6 will be released Friday, one day later than
usual due to a federal holiday.

 FUTURES        SETTLEMENT  NET CHANGE
 Nymex December  $2.263      -5.7c
 Nymex January   $2.452      -3.2c
 Nymex February  $2.492      -2.2c

 CASH HUB       RANGE               PREVIOUS SESSION
 El Paso Perm   $1.97-$2.04         $2.01-$2.035
 El Paso SJ     $2.04-$2.08         $2.02-$2.07
 Henry Hub      $2.015-$2.1375      $2.095-$2.14
 Katy           $2.04-$2.06         $2.04-$2.09
 SoCal          $2.235-$2.32        $2.13-$2.24
 Tex East M3    $1.15-$1.22         $1.22-$1.27
 Transco 65     $2.03-$2.1075       $2.045-$2.09
 Transco Z6     $1.51-$1.55         $1.57-$1.70
 Waha           $1.99-$2.03         $2.00-$2.04


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


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  (END) Dow Jones Newswires

  November 11, 2015 15:21 ET (20:21 GMT)

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

111115 20:21 -- GMT
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