Dow Jones - Natural Gas Sinks On Warmer Weather Outlook

DJ Natural Gas Sinks on Warmer Weather Outlook

   By Nicole Friedman

  NEW YORK--Natural-gas prices slid Tuesday as forecasts saw warmer weather, reducing demand expectations.

  Natural gas is widely used as an indoor-heating fuel and warmer-than-normal weather at this time of year lowers
consumption.

  Robust output and mild weather have pushed natural-gas inventories in the U.S. to record highs, and the recent
forecasts raise concerns that the glut could keep growing.

  "Prices are back on the defensive as the latest weather outlook is not as supportive as those issued over the
weekend," said Dominick Chirichella, analyst at the Energy Management Institute, in a note.

  Prices gained Monday on forecasts for lower temperatures in the next two weeks, but weather outlooks released Tuesday
called for more moderate weather than previously expected.

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

  Futures for December delivery recently fell 4.8 cents, or 2.2%, to $2.162 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 $2.11/mmBtu, compared with Monday's
range of $2.075-$2.185.

  Cash prices at the Transco Z6 hub in New York last traded at $2.03/mmBtu, compared with Monday's range of
$2.24-$2.30.
   Write to Nicole Friedman at nicole.friedman@wsj.com

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  (END) Dow Jones Newswires

  November 24, 2015 10:10 ET (15:10 GMT)

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

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