Natural Gas Dropped As Production Surged And Mild Winter Weather Depressed Demand.
Natural gas witnessed a substantial decline of -4.59% and settled at 153.8 as increased production, mild winter weather, and recent LNG export plant outages depressed demand.
Analysts project potential cutbacks in gas drilling as the gas rig count already fell by 23% in 2023, leaving just 120 rigs in service. The U.S. Energy Information Administration (EIA) reported a withdrawal of just 75 billion cubic feet (bcf) of gas from storage for the week ended Feb 2.
Although in line with analysts’ forecasts, it contrasts sharply with a decrease of 208 bcf in the same week last year and a five-year average decline of 193 bcf for this time of year.