Increasing production continues to weighMarket commentary from NG Intelligence:
Even if the colder temperatures prevail, traders are finding it increasingly difficult to ignore near-record production. “The entire natural gas strip is selling off on recent production increases, as supply-side loosening is clearly absorbing impressive weather-driven demand through the next couple of weeks,” Bespoke Weather Services analysts said.
Indeed, Lower 48 dry gas production nearly broke a single-day record on Saturday (March 17) when it reached 79.4 Bcf/f, just 100 MMcf/d shy of the record set on Feb. 28, according to PointLogic Energy. “The last seven days have been a banner week for production, with four days above 79.0 Bcf/d,” it said.
Versus the 30-day average, dry gas production is up more than 0.5 Bcf/d, with Texas production notching the biggest rebound, more than 0.2 Bcf/d higher. Midcontinent production is the only region showing a deficit to the 30-day average, PointLogic Energy said.