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Natural Gas Futures Gain... see bold
Traders look past forecasts for warmer-than-average temperatures in the next two weeks
By NICOLE FRIEDMAN
Nov. 3, 2015 10:43 a.m. ET
http://www.wsj.com/articles/natural-gas-futures-gain-1446565384
NEW YORK--Natural gas prices rose Tuesday as traders looked past forecasts for warmer-than-average temperatures in the next two weeks.

Futures for December delivery recently rose 1.9 cents, or 0.8%, to $2.275 a million British thermal units on the New York Mercantile Exchange.

Natural-gas prices have slumped in recent sessions as weather forecasts have called for above-normal temperatures to extend into mid-November, which is expected to reduce demand for natural gas as an indoor-heating fuel. Some traders worry that low consumption could push inventories of natural gas to record highs in the coming weeks.

However, heating demand is expected to increase later in December.

“The December futures are still being forced to price in some possible cold trends during the second half of this month,” said energy-advisory firm Ritterbusch & Associates in a note.

In addition, the firm said, Tuesday’s price gain suggests that traders are unwilling to bet that prices can fall even lower.

“Although the overnight price upswing of only around two-to-three cents thus far is modest, it appears to be serving notice that speculative and commercial selling is drying up at these sharply lower levels,” Ritterbusch & Associates said.

Frank Clements of Meridian Energy Brokers said in a note that he expects prices to hold between $2.10 and $2.40/mmBtu. “Despite the warm weather, the market is precariously holding firm,” he said.

Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $1.94/mmBtu, compared with Monday’s range of $1.895-$1.95. Cash prices at the Transco Z6 hub in New York last traded at $1.27/mmBtu, compared with Monday’s range of $1.38-$1.62.

Write to Nicole Friedman at [e-mail]