Dow Jones - Natural Gas Prices Rise Off Lows

DJ Natural Gas Prices Rise Off Lows


   By Nicole Friedman


  NEW YORK--Natural gas futures rose Monday, as traders weighed expectations of stronger demand against concerns about
record-high amounts of fuel in storage.

  Natural gas prices fell to a four-week low Friday on concerns about rising inventories and weak demand. Moderate
weather and robust production has pushed the market into oversupply in recent months. Stockpiles of natural gas rose to
4 trillion cubic feet for the first time on record in the week ended Nov. 13.

  Forecasts for colder temperatures in the next two weeks boosted prices Monday. About half of U.S. households use
natural gas as a primary heating fuel, and cold weather leads to higher consumption.

   "The U.S. natural gas market is expecting to see its first winter test over the next two weeks," which "should help
set [a] price floor through month-end," said Morgan Stanley in a note.

  However, the bank added, "any price support may be brief as mild temps and a production ramp are expected in
December."

  Futures for December delivery recently rose 0.7 cent, or 0.3%, to $2.152 a million British thermal units on the New
York Mercantile Exchange.

  Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.1675/mmBtu, compared with Friday's
range of $2.13-$2.22. Cash prices at the Transco Z6 hub in New York last traded at $2.25/mmBtu, compared with Friday's
range of $2.15-$2.22.


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


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  (END) Dow Jones Newswires

  November 23, 2015 10:31 ET (15:31 GMT)

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

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