Nat Gas News – May 24, 2017
Nat Gas News – May 24, 2017
In the News
US Northeast DUCs to continue boosting gas output
Platts reports: The puzzling drawdown in US Northeast inventories of drilled-but-uncompleted wells — in sharp contrast to the broader industry trend — is likely to continue buoying regional gas production in the near term as risk-averse producers cash in on recent infrastructure expansions and elevated gas prices. DUC counts in the Northeast have continued falling this year through April, according to the latest data available from the US Energy Information Administration. In the Marcellus, producers have added just three new wells to inventory since December. Over the same period, inventories in the Utica have fallen by 14 and are now at their lowest on record dating back to late 2013. In the EIA’s other five production-reporting areas, well inventories continue to rise, led by the Permian where operators have cataloged 476 new DUCs this year alone. By late 2017, elevated prices and recent capacity expansions are expected to provide sufficient incentive to lift Northeast production to nearly 25 Bcf/d, Platts Analytics forecasts show. For more visit platts.com or click the following link http://bit.ly/2qhJAo0
Natural Gas Prices Reverse Course, Erase Monday’s Gain
Economic Calendar reports: Natural gas prices remain exceptionally volatile and have reversed course in today’s session following a two-day rebound. As a result of today’s sell-off, the gap that was created as a result of Monday’s strong open has been filled and natural gas prices have followed through to the downside to test the 61.8% retracement of the 2-day advance. Thus, additional losses over the near term would confirm a break of this retracement level. At present, however, given the recent price gyrations, natural gas prices are best described as being in a broad consolidation phase and, as long as this consolidation remains intact, further price swings without a clear trend developing could characterize price action.
This article is part of Daily Natural Gas Newsletter
Tagged:
MARKET CONDITION REPORT - DISCLAIMER
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
