Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

US gas market: production cuts amid falling prices


August, 07 2024
watermark Economic news

American natural gas companies are preparing to reduce production in the second half of 2024 amid a sharp drop in prices. Over the past two months, Henry Ha gas prices have fallen by almost 40%, reaching about $2 per million British thermal units.


The drop in prices is due to lower demand caused by lower-than-expected temperatures and increased supplies, which some companies increased at the beginning of the second quarter after prices rose by 47% in April and May. 


In response to the current situation, a number of large companies have announced plans to reduce production. EQT and Apache have decided to reduce production by 2.5 million cubic meters per day, and Chesapeake Energy, Antero Resources Corp and EGO Resources will postpone the completion of some wells until the gas market recovers. 


Experts believe that companies have made the right choice by postponing the completion of wells, as this may support gas prices when demand for LNG increases. Coterra Energy, a shale oil company, cancelled some cuts at the end of the second quarter, but is preparing for further cuts in the off-season. 


In general, natural gas production in the United States this year will amount to about 2.92 billion cubic meters per day, which is comparable to the volume of production last year.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.