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natural gas prices

Natural Gas Market Collapse

On Thursday, natural gas prices fell by nearly 6% to $2.945.  The break in gas prices below the key $3 per Mcf threshold puts them now at a seven-year low.  The price break was helped by another injection into storage of 52 Bcf.  This week's injection was below Wall Street's consensus anticipated 58 Bcf injection estimate, so it should have been a positive for gas prices.  However, projections are now calling for total storage volumes of 3.9 Tcf to be reached before the end of the injection season in nine weeks.  At that point, gas will need to be either shut in or

Natural Gas Monthly Production On Cusp of Real Decline?

The July release of the Energy Information Administration's monthly gross natural gas production data collected from its Form 914 survey of producers shows a meaningful decline for May's production compared to April's revised production estimate.  May production was initially estimated at 62.24 billion cubic feet per day (Bcf/d), down 0.8% from April's revised production estimate of 63.35 Bcf/d.  Many analysts have latched on to this data as a sign that the industry's gas drilling cutbacks are beginning to show meaningful production reductions that will lead to higher natural gas

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