BetaPro Natural Gas Leveraged Daily Bull ETF T.HNU

NO ONE MAKES MONEY IN LOW NAT GAS PRICES

[WolfOfWeed]

Natural Gas Prices Forecast: Major Players Planning Significant Production Cuts

By:James Hyerczyk

Published: Feb 16, 2024, 08:35 EST•2min read

 

 

 

 

U.S. natural gas futures could rise as Antero, Comstock cut production amid potential new laws affecting America’s LNG export status and global relations.

Mentioned in Article

Natural Gas

$1.664

+1.34%

 

Key Points

• Natural gas futures trying to stabilize, near 3-1/2-year low.
• Major producers plan significant production and budget cuts.
• U.S. gas market reacts to legislative changes and global events.

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Market Trends

U.S. natural gas futures are showing a slight increase, as market participants evaluate the impact of various factors such as weather, supply, demand, and production. Prices are currently near a 3-1/2-year low, with a focus on potential output changes for 2024.

At 13:21 GMT, U.S. Natural Gas futures are trading $1.606, up $0.025 or +1.58%.

Supply Adjustments

Key gas producers, including Antero Resources and Comstock Resources, are planning to reduce production. Antero expects a 3% drop in 2024, with a significant 26% cut in its drilling and completion budget. This reduction involves decreasing the number of operational rigs and completion crews. Comstock has also announced a reduction in gas drilling.

Supply and Demand Trends

Recent data indicates an increase in gas output in the U.S. Lower 48 states to an average of 105.8 billion cubic feet per day (bcfd) in February. Although the weather has been mostly warmer, a slight cooldown is anticipated to boost gas demand. U.S. liquefied natural gas (LNG) exports have decreased in February, with the status of the Freeport LNG facility being a contributing factor.

Legislative Developments

A recent bill proposes transferring LNG export approval authority from the Department of Energy to the Federal Energy Regulatory Commission. This change comes amidst a halt in approvals for major markets to review environmental and economic impacts. The U.S. is now the leading LNG exporter, with its strategy impacted by global events such as Russia’s invasion of Ukraine and Europe’s shift from Russian gas.

Market Forecast

The short-term outlook for U.S. natural gas futures indicates potential volatility, influenced by the balance of production cuts, fluctuating weather conditions, and legislative changes. The market is poised to respond to adjustments in supply and demand dynamics, particularly with regard to LNG exports and the interplay of global events. Analysts are closely monitoring these factors for indications of future price movements.

Technical Analysis

 

Daily Natural Gas

Natural gas futures are still fishing for a bottom on Friday, but conditions could turn more promising with several major producers planning to cut production.

Technically, we’re not watching prices to closely. We’ve focusing on price patterns and volume ships. They’ll tell us if momentum is shifting.

The ideal pattern is a lower lower than the previous session, followed by a higher close. Given the prolonged move down in terms of price and time, a confirmation of this chart pattern could trigger a notable counter-trend short-covering rally. Be patient.

[101TECHNICAL101]

That's correct ..... Chesapeake Energy slashed its 2024 gas production projections by about 20% by scaling back capital expenses, reducing rig counts, and delaying well completions. This move is expected to lower gas output to around 2.7 billion cubic feet per day. Other major gas producers like Antero Resources, Comstock Resources, and EQT have also revealed plans to curtail drilling

[101TECHNICAL101]

And another ones cuts production by 1 BCF  EQT to reduce natgas production through March on low prices Reuters   March 4, 20246:18 AM ESTUpdated 2 hours ago March 4 (Reuters) - EQT (EQT.N) , opens new tab will curtail nearly 1 billion cubic feet per day (bcfpd) of natural gas production through March, the top U.S. natural gas producer said on

[101TECHNICAL101]

Technicals placed in.  I guess those shorts did not realize that no one makes money at those low prices and companies will cut production and capex back.  Told ya all can't be down here for too long .

[InvrsContrarian]

The savvy companies have already long ago hedged for future prices. It's scalping time for the futures traders. Gas companies are laughing at the regional spot prices and the futures traders are cashing in. Lower for longer is Biden's take. Plus it's election year, Biden needs the prices to come down to make his case for presidency. 

[InvrsContrarian]

The bar is low. Half. Of last week's numbers. Gonna best that easily. Hnu for the win tmr. Imo.