Natural Gas Dropped As Production Surged And Mild Weather.
Natural gas prices settled down by -1.82%, closing at 151, as a surge in production, mild winter weather, and recent LNG export plant outages weighed on demand. Analysts anticipate that some producers may curtail gas drilling activities in response to the challenging market conditions. The gas rig count experienced a 23% decline in 2023, leaving only 120 rigs in service, with an additional three rigs taken offline so far this year, according to Baker Hughes.
The U.S. Energy Information Administration (EIA) reported that utilities withdrew 75 billion cubic feet (bcf) of gas from storage during the week ended Feb. 2.