Dow Jones - End of Day Commentary

DJ Natural Gas Sinks on Warmer Weather Outlook


   By Nicole Friedman


  NEW YORK--Natural-gas prices slid Tuesday on expectations that weekly inventory data would show natural-gas supplies
at a new record high.

  Natural gas is widely used as an indoor-heating fuel, and warmer-than-normal weather in recent weeks has lowered
consumption. Natural gas inventories typically fall at this time of year due to strong demand, but they have been
rising in recent weeks and climbed to 4 trillion cubic feet in the week ended Nov. 13 for the first time on record.

  Analysts and traders surveyed by The Wall Street Journal expect the U.S. Energy Information Administration to report
Wednesday that natural-gas inventories rose another 4 billion cubic feet in the week ended Nov. 20. The weekly
inventory data will be released one day earlier than usual due to the Thanksgiving holiday.

  If the storage estimate is correct, inventories as of Nov. 20 will total 4.004 trillion cubic feet, a record high.
That stockpile level would be 16% above the year-ago level and 6.6% above the five-year average for the same week.

  Futures for December delivery fell a penny, or 0.5%, to $2.20 a million British thermal units on the New York
Mercantile Exchange.

  Weather outlooks released Tuesday called for more moderate weather than previously expected, fueling concerns that
inventories could grow again this week.

  "All models were warmer overnight, said Commodity Weather Group LLC in a note. "The expectation for a ... cold surge
is weakening."

   FUTURES             SETTLEMENT          NET CHANGE
   Nymex December        $2.200              -1.0c
   Nymex January         $2.324              -1.9c
   Nymex February        $2.372              -1.4c
   CASH HUB                RANGE             PREVIOUS SESSION
   El Paso Perm       $2.045-$2.115            $2.05-$2.1575
   El Paso SJ         $2.01-$2.185             $2.15-$2.1975
   Henry Hub          $2.08-$2.1325            $2.075-$2.175
   Katy               $2.06-$2.10              $2.11-$2.15
   SoCal              $2.22-$2.34              $2.20-$2.37
   Tex East M3        $1.57-$1.7975  $1.60-$1.7 $1.62-$1.79755
   Transco 65         $2.09-$2.13              $2.125-$2.1575
   Transco Z6         $2.00-$2.03              $2.24-$2.30
   Waha               $2.00-$2.15              $2.05-$2.15


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


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  (END) Dow Jones Newswires

  November 24, 2015 15:02 ET (20:02 GMT)

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

112415 20:02 -- GMT
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