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See_BOLD:_Natural Gas Slips as Winter Weather Appears Distant
Prices for the January contract fell 1.4 cents, or 0.6%, to $2.221 a million British thermal units
By TIMOTHY PUKO
Dec. 1, 2015 10:58 a.m. ET
http://www.wsj.com/articles/natural-gas-slips-as-winter-weather-appears-distant-1448985526
Natural gas prices are falling as even warmer weather settles in across a country that has already seen an abnormally warm autumn.

Prices for the January contract, now the front-month, fell 1.4 cents, or 0.6%, to $2.221 a million British thermal units on the New York Mercantile Exchange.

About half of U.S. homes use natural gas for heat, making winter weather the big driver for demand, but forecasts show widespread warmth across the country. Temperatures across the East and in most of the country’s northern tier will likely be between 5- and 15-degrees-Fahrenheit-above normal for at least the next two weeks, according to MDA Weather Services in Maryland.

“Stifled demand is expected to limit upside potential in price today,” analysts at consultant Schneider Electric SA in Louisville, Ky., said in a note.

But prices have at times jumped into positive territory Tuesday, a sign traders may be wary of selling, also known as going short, said Jim Ritterbusch, president of energy-advisory firm Ritterbusch & Associates, in a note. The potential for gains has fallen now that gas is down by half from this time a year ago. Storage levels surpassed 4 trillion cubic feet last week for the first time ever, but prices have already plummeted in recent weeks as storage peaked.

“Record storage (levels) have been baked in and...most money managers have a reduced appetite for the short side of this market,” Mr. Ritterbusch said in a note.

Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.155/mmBtu, compared with Monday’s range of $2.0425 to $2.14. Cash prices at the Transco Z6 hub in New York last traded at $2.05/mmBtu, compared with Monday’s range of $2.09 to $2.13.

Write to Timothy Puko at [e-mail]