Natural Gas Surges as Output Declines

May 18th, 2020

Natural gas prices surge 18 cents to $1.83/mmBtu as data point to a decline in US gas output.

Analysts at Houston-based Tudor Pickering say US gas flows stood at 88.1B cubic feet per day on Sunday, “down from 90.2bcfd on Friday,

with the Northeast accounting for 1.4bcfd, followed by Texas flows down 0.4bcfd.” The analysts caution, however,

that the decline may not last, especially as oil prices push above $30/bbl as this could lead oil and gas producers to get the commodities flowing again.

Additionally, they note weekly EIA storage this week may show another triple-digit rise as LNG demand takes a hit.

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