Dow Jones - Natural Gas Falls As Stockpiles Likely To Grow

DJ Natural Gas Falls as Stockpiles Likely to Grow


   By Timothy Puko


  Natural gas is falling for a third straight session as traders expect new data to show stockpiles are still building
at a time of year when they usually decline.

  Futures for December delivery recently traded down 0.4 cent, or 0.2%, at $2.343 a million British thermal units on
the New York Mercantile Exchange. Prices have traded in a narrow, 4-cent range, a common trend on Thursday mornings as
traders position themselves ahead of the weekly stockpile update from the U.S. Energy Information Administration,
scheduled for 10:30 a.m. EST.

  Gas stockpiles are likely to enter the winter holding more than 4 trillion cubic feet for the first time. The Wall
Street Journal survey of analysts shows a forecast of 17 bcf added to storage during the week that ended Friday, a time
of year when stockpiles usually start to drain. That would put stockpiles 11% above levels from a year ago and 5.5%
above the five-year average for the same week.

  Prices have received support from colder weather forecasts, with many traders hoping the onset of winter will bring a
traditional boost to both heating demand and prices. About half of U.S. homes use natural gas for heat.

  But much of the coldest weather isn't forecast to hit the country's largest markets for gas heat. That has more
people expecting that stockpiles could keep growing through this week, about two weeks longer than usual, said John
Saucer, vice president of research and analysis at Mobius Risk Group in Houston.

  "It's been so mild," said Scott Gettleman, an independent trader in New York. "Mild weather, big inventories, we're
just setting up for lower."

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.16/mmBtu, compared with
Wednesday's range of $2.09-$2.15. Cash prices at the Transco Z6 hub in New York last traded at $2.05/mmBtu, compared
with Wednesday's range of $2.06 to $2.10.


  Write to Timothy Puko at tim.puko@wsj.com


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  (END) Dow Jones Newswires

  November 19, 2015 10:26 ET (15:26 GMT)

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

111915 15:26 -- GMT
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