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WSJ Natural Gas Sinks on Weather Outlook
Weather forecasts showed warmer temperatures in the next two weeks than previously expected
By NICOLE FRIEDMAN
Dec. 30, 2015 10:14 a.m. ET
http://www.wsj.com/articles/natural-gas-sinks-on-weather-outlook-1451488443
NEW YORK—Natural gas prices slid Wednesday, erasing strong gains from the previous sessions, on renewed concerns about weak demand.

Futures for February delivery recently fell 13.8 cents, or 5.8%, to $2.232 a million British thermal units.

Natural-gas prices entered a bull market Tuesday after rising 27% in six trading days as colder weather forecasts boosted demand expectations. About half of U.S. households use natural gas as their primary heating fuel. Unusually cheap natural gas also boosted demand from power plants and other industrial sites, analysts said.

However, weather forecasts released Wednesday showed warmer temperatures in the next two weeks than previously expected.

A strong El Nino weather pattern has caused above-normal temperatures across much of the U.S. in recent weeks, reducing demand for heating fuels. As of Dec. 18, natural-gas inventories stood 12.1% above the five-year average for this time of year.

Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.255/mmBtu, compared with Tuesday’s range of $2.33 to $2.39. Cash prices at the Transco Z6 hub in New York last traded at $2.07/mmBtu, compared with Tuesday’s range of $1.65-$2.25.

Write to Nicole Friedman at [e-mail]