Natural Gas News – April 2, 2024
Natural Gas News – April 2, 2024
Natural Gas Producers Are Ready To Pounce
U.S. natural gas producers are slashing production in response to multi-year low prices. But they are also looking beyond the current slump, preparing to turn on more output by flexible operation of their inventory of wells. “Natural gas is currently pricing at or below costs of production,” an executive at an exploration and production company said in comments in the quarterly Dallas Fed Energy Survey released this week. Prices are historically low due to weak winter demand amid milder weather, record output at the end of 2023, and higher-than-average natural gas stocks. Working natural gas stocks in the week to March 22 were 41% more than the five-year average and 23% higher than last year at this time, per the latest EIA data. The oversupply and low prices have prompted many producers to start reducing production… For more info go to https://tinyurl.com/2bvmvue5
Natural Gas News: Choppy Trade
Recent fluctuations in U.S. natural gas futures are a result of changing weather forecasts impacting demand, and evolving supply conditions. This creates a complex environment for traders. At 12:22 GMT, Natural Gas Futures are trading $1.796, down $0.041 or – 2.23%. The market saw a temporary boost in prices due to colder weather predictions, signaling an increase in heating demand. According to NatGasWeather, a cold front across central and eastern U.S. is expected to ramp up demand later this week. Conversely, projections for April 7-15 indicate milder temperatures, leading to a reduced demand forecast. This oscillation in weather patterns is a key driver of the current market volatility. On the supply side, a potential decline in natural gas production is on the horizon, the first… For more info go to https://tinyurl.com/ahunhdsz
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