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News link: Natural-Gas Prices Edge Higher
Recent rally seen limited by weakened hopes for demand
By TIMOTHY PUKO
Oct. 13, 2015 11:06 a.m. ET

Natural gas is making small additions to recent gains, but weakened hopes for demand are limiting the rally.

Prices for the front-month November contract gained 0.2 cent, or 0.1%, to $2.537 a million British thermal units on the New York Mercantile Exchange. Gas has now made gains in seven out of eight sessions, but only gained 4.3% over that time, which started after gas set a new three-year low.

Some colder temperatures in weather forecasts fed hope on Monday that there could be a burst of heating demand coming soon. But forecasts are still showing largely normal to above-normal temperatures for the next two weeks. At this time of year that weather usually makes it too warm for heating demand but too cool to drive demand for natural gas-fired power to fuel air conditioners.

“We’re really doing nothing,” said Dean Hazelcorn, trader at the brokerage Coquest Inc. in Dallas. “This is the same old same old. These rallies need to be sold in the near term.”

Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.46/mmBtu, compared with Monday’s range of $2.43-$2.44. Cash prices at the Transco Z6 hub in New York last traded at $2.40/mmBtu, compared with Monday’s range of $2.38 to $2.43.

Write to Timothy Puko at [e-mail]
http://www.wsj.com/articles/natural-gas-prices-edge-higher-1444748773