# RS Advisories: Natural gas glut is crushing US Drillers

> 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.

- Date: 2019-08-01 · published 2019-08-01T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/7909-rs-advisories-natural-gas-glut-is-crushing-us-drillers
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

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.

## Read by commodity

- NATGAS: bearish ▼

## Sources

- rsadvisories.blogspot.com: http://rsadvisories.blogspot.com/2019/08/natural-gas-glut-is-crushing-us-drillers.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.