DJ Natural Gas Prices Retreat on Warm November
By Timothy Puko
Natural gas is retreating from the prior session's strong gains as warm forecasts for early November keep weighing on
the market.
Natural-gas futures for December delivery recently lost 3.5 cents, or 1.5%, to $2.329 a million British thermal units
on the New York Mercantile Exchange. Prices briefly touched a two-week intraday high earlier in the morning, building
on Thursday's gains that had been the largest one-day percentage gains since June.
"They tried to take it through the upper band...and buying dries up," said Gene McGillian, an analyst at Tradition
Energy. "Buying dries up because we don't have supportive weather forecasts."
Natural-gas prices have slumped for weeks on worries that mild weather will limit indoor-heating demand and keep the
market oversupplied. Natural gas is used as the primary heating fuel in about half of U.S. households.
Private meteorologists are still showing above-average temperatures covering about half the country for the next two
weeks. Some colder temperatures have crept into forecasts in recent days--pushing Thursday's gains--but much of it is
in the west and outside of the primary eastern and Midwestern markets for gas heating.
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.175/mmBtu, compared with
Thursday's range of $2.05-$2.15. Cash prices at the Transco Z6 hub in New York traded in a bid-ask range of $1.25/mmBtu
to $1.68/mmBtu, compared with Thursday's range of $1.29-$1.40.
Write to Timothy Puko at tim.puko@wsj.com
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(END) Dow Jones Newswires
November 06, 2015 09:49 ET (14:49 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
110615 14:49 -- GMT
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