Articles tagged Lower 48

The U.S. natural gas rig count declined by one unit to 96 for the week ended Friday (Sept. 20) as drilling slowed ahead of the fall shoulder season, according to updated Enverus and Baker Hughes Co. (BKR) data.

Supplies of natural gas in storage are stout everywhere, but East region inventories are closer to historical norms than any other section of the Lower 48.

Natural gas production cuts have stabilized the fuel’s prices by countering weak Lower 48 winter demand, turning the market’s attention to the next big levers for fundamentals: the upcoming summer and added wind and solar capacity.

Natural gas futures extended losses into a fifth consecutive session Monday as fundamental support continued to evade, leaving little for the market to latch onto to drive March Nymex natural gas out of the basement and off more than three-year lows.

CNX Resources Corp. expects efficiencies and new wells in the Appalachian Basin to help lower costs and maintain natural gas output in the years ahead as it explores alternative fuels. 

Aside from further discounts at Western Lower 48 hubs, natural gas forwards generally gained ground during the Dec. 14-20 trading period as the prospect of chillier conditions arriving in early 2024 lent support to prices.

The U.S. Energy Information Administration (EIA) is slashing its winter Henry Hub spot price forecast on a combination of elevated production and weak space heating demand for natural gas so far this season.

Natural gas futures forged ahead on Monday, building on the modest momentum gathered late last week after supportive government inventory data and price jumps in Europe. Following a 2.7-cent gain on Friday, the October Nymex gas futures contract settled at $2.639/MMBtu, up two-tenths of a cent to start the new week. November rose 2.7 cents to $2.906.

A recent poll commissioned by the American Petroleum Institute (API) of U.S. registered voters has found that a majority agree that domestic natural gas and oil production could lower energy prices and ensure national security. 

Natural gas futures found further momentum on Monday, rallying a second consecutive session amid bargain buying, hints of a potential pullback in U.S. production and wildfires that interrupted output in Canada and boosted cash markets.