⥠EQT production cuts support natural gas price rebound
Natural gas futures are gaining more than 5% today driven by comments from EQT Corp and weather forecasts in the US. US-based EQT (EQT.US) conveyed in its earnings report that it will reduce its 2024 production range by 50 billion cubic feet. Also, another US gas and hydrocarbon operating giant, Chesapeake Energy has reduced production volumes by 30%, in 2024. What's more, Comstock and Antero Resources are also set to reduce gas drilling, this year, and Baker Hughes (BKR.US) has reported that US drilling is already down 26% in 2023.
Natural gas prices fell last week to their lowest level in more than four years, mainly due to a mild winter and an increase in production towards the end of 2023.
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On the other hand, however, relatively higher-than-historic average temperatures in key heating regions may negatively impact gas prices in the medium term. Source: Bloomberg Financial LP
Gas consumption and production data point to a decline in demand for gas. By contrast, available gas supply has shrunk markedly since the beginning of 2024. Source: EIA
The US natural gas price gains observed today reach the vicinity of the key $2 zone, which in the medium term may be a key control level for the demand/supply sides. Source: xStation
