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Natural gas producers are suffering from low prices amid a supply glut driven by record Marcellus output and Permian associated gas. Spot prices fell below $2.20/MMBtu despite an East Coast heat wave.
Flaring continues because of a lack of pipeline capacity, and new Gulf Coast pipelines will add more supply.
Oversupply and new pipeline capacity point to continued weak natural gas prices, which lowers energy input costs for feed processors. Reduced drilling activity over time could eventually tighten supply.
rsadvisories.blogspot.comRitu ShahAug 1, 2019Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
