Posted 2/20/2024, 1:00:00 AM
Mild Winter Weather Contributes to Natural Gas Glut, Dragging Prices to 30-Year Lows
- Warmer winter temperatures in the U.S. have led to a natural gas glut, dragging prices to three-decade lows despite record production
- Major producers are cutting back on drilling activity in response to oversupply and low prices
- High inventory levels and reduced withdrawals from storage likely to keep prices low until end of winter
- Average rate of withdrawals from storage 12% lower than 5-year average so far this winter
- Producers signaling reduced activity and production rates to respond to unsustainable low prices